Securities Fraud Action Against ATI Technologies, Inc. Filed by Scott+Scott, LLC
September 28 2005 - 8:40PM
PR Newswire (US)
Complaint Alleges Insider Trading Pattern COLCHESTER, Conn., Sept.
28 /PRNewswire/ -- Scott+Scott, LLC (http://www.scott-scott.com/)
represents shareholders in a securities class action filed in the
United States District Court for the Eastern District of
Pennsylvania against ATI Technologies, Inc. ("ATI") (NASDAQ:ATYT)
and individual defendants. ATI securities purchasers between
October 7, 2004 and June 23, 2005, inclusive (the "Class Period"),
are members of the putative class. ATI is the world's second
largest computer graphics chip maker and engages in the design,
manufacture and sale of 3D graphics and digital media silicon
solutions. If you wish to discuss this action or have questions
concerning this notice or your rights as a class member, please
contact Scott+Scott for more information. Scott+Scott will provide
you with case materials, answer all questions regarding your
participation and rights and assist you with other services the
firm provides. There is no cost or fee to you. Contact Scott+Scott
partner Neil Rothstein (, 800/332-2259, ext. 22, or cell
619/251-0887). The complaint alleges that during the Class Period,
ATI and certain individual defendants violated the Securities
Exchange Act of 1934 by making false and misleading statements
about ATI, causing its stock to trade at artificially inflated
levels and allowing insiders to sell over $54 million worth of
their own shares at artificially inflated prices. Specifically, the
complaint alleges that throughout the Class Period, ATI falsely
reported strong financial results in press releases and SEC
filings. The truth began to emerge on June 6, 2005, when ATI warned
that its revenues for the third quarter 2005 would be $530 million,
5% below the Company's guidance. The complaint also alleges that
during the Class Period, Chairman Kwok Yuen Ho ("Ho") was embroiled
in an insider trading case with the Ontario Securities Commission
for April of 2000 stock sales of over $7 million. On April 11,
2005, ATI agreed to settle its own liability for complicity in the
insider trading suit by paying $900,000 in fines and agreeing to
corporate governance changes, including insider trading
prohibitions. Despite Ho's knowledge that insider trading violates
investor protection laws in the United States, it is alleged, Ho
again disposed of over $43 million worth of ATI stock during the
Class Period. The plaintiff is represented by Scott+Scott, LLC,
which has expertise in prosecuting investor class actions. The firm
dedicates itself to client communication and satisfaction and
currently is litigating major securities, antitrust and employee
retirement plan actions throughout the United States. The firm
represents pension funds, charities, foundations, individuals and
other entities worldwide. Current cases the firm is litigating
include: Host America Corp.; Mercury Interactive Corp.; Investors
Financial Services Corp.; Boston Scientific Corp.; DHB Industries,
among others. Website: http://www.scott-scott.com DATASOURCE:
Scott+Scott, LLC CONTACT: Neil Rothstein, 1-800-332-2259, ext. 22,
or mobile: +1-619-251-0887, , of Scott+Scott, LLC
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