Ati (NASDAQ:ATYT)
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From Jun 2019 to Jun 2024
Lerach Coughlin Stoia Geller Rudman & Robbins LLP
("Lerach Coughlin") (http://www.lerachlaw.com/cases/atitechnologies/)
today announced that a class action has been commenced in the United
States District Court for the Eastern District of Pennsylvania on
behalf of purchasers of ATI Technologies Inc. ("ATI") (NASDAQ:ATYT)
publicly traded securities during the period between October 7, 2004
and June 23, 2005 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no
later than 60 days from today. If you wish to discuss this action or
have any questions concerning this notice or your rights or interests,
please contact plaintiff's counsel, William Lerach or Darren Robbins
of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at
wsl@lerachlaw.com. If you are a member of this class, you can view a
copy of the complaint as filed or join this class action online at
http://www.lerachlaw.com/cases/atitechnologies/. Any member of the
purported class may move the Court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an
absent class member.
The complaint charges ATI and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. ATI
is the world's second largest computer graphics chip maker.
The complaint alleges that during the Class Period, defendants
made false and misleading statements regarding the Company's business
and prospects. As a result of defendants' false and misleading
statements, ATI's stock traded at inflated levels, allowing the
Company's top officers and directors to sell or otherwise dispose of
more than $54 million worth of their own shares at artificially
inflated prices.
The complaint alleges that the true facts, which were known by
each of the defendants but concealed from the investing public during
the Class Period, were as follows: (a) the Company was selling desktop
and notebook products with lower and lower profit margins; (b) ATI's
gross margins were being weakened by high sales of its IGP products,
which have profit margins well below the corporate average; (c) the
Company was earning lower-than-anticipated yields on certain products
due to operational issues in its own packaging and test areas of its
manufacturing process; (d) the Company was experiencing
production/design/yield issues with its R520 chip; (e) the Company was
losing market share to arch-rivals Nvidia Corp. and Intel Corp.; and
(f) despite defendants' previous statements to the contrary, a fire at
one of the Company's primary suppliers in Taiwan was preventing the
Company from receiving necessary supplies.
On June 6, 2005, ATI warned that its revenue for the third quarter
2005 would fall well below its previously announced forecast.
Thereafter, when the Company issued its actual third quarter 2005
financial results on June 23, 2005, reporting a quarterly loss of
$445,000 in the third quarter 2005 compared to a profit of $48.6
million in the third quarter 2004 and further reducing fourth quarter
2005 revenue expectations by $20-$50 million, the Company's stock
price fell another 8% to its lowest point since July 2003 on extremely
high volume.
Plaintiff seeks to recover damages on behalf of all purchasers of
ATI Technologies publicly traded stock during the Class Period (the
"Class"). The plaintiff is represented by Lerach Coughlin, which has
expertise in prosecuting investor class actions and extensive
experience in actions involving financial fraud.
Lerach Coughlin, a 150-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Houston, Philadelphia and Seattle, is active in major litigations
pending in federal and state courts throughout the United States and
has taken a leading role in many important actions on behalf of
defrauded investors, consumers, and companies, as well as victims of
human rights violations. Lerach Coughlin lawyers have been responsible
for more than $20 billion in aggregate recoveries. The Lerach Coughlin
Web site (http://www.lerachlaw.com) has more information about the
firm.