Is “Overstatement” a Scrabble word?

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Yes
OVERSTATEMENT
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Unavailable

Meaning of Overstatement

noun
  1. 1.An exaggeration; a statement in excess of what is reasonable.

    The story he gave was something of an overstatement of the facts.

  2. 2.The tendency to overstate.

    She had a knack for overstatement.

Synonyms: exaggeration, hyperbole