Vermont law firm Johnson & Perkinson has issued a press release announcing that it is filing a class action suit in the US against ATI, on behalf of investors.
In the complaint, it is alleged that "throughout the Class Period, ATI reported strong financial results in publicly disseminated press releases and in filings with the SEC. In addition, defendants repeatedly issued positive guidance, claiming that ATI's purported leadership in graphics and multimedia technologies in the consumer electronics and PC markets would "continue driving growth for ATI in fiscal 2005." As a result of these statements, the price of ATI stock became artificially inflated during the Class Period. Certain Company insiders, including defendants Kwok Yuen Ho and David E. Orton took advantage of the artificial inflation in the price of the Company's stock, and during the Class Period, each sold approximately 40% of their personally-held ATI stock for total proceeds of over $54 million."
ATI revised its Q4 revenue predictions by some US$70mil resulting in a 10% share price drop the same same. Other news of losses has, according to the press release, resulted in further drops in share price.
Johnson & Perkinson are currently looking for a class member to appoint as lead plaintiff, to represent the rest of the class members.
More details on the suit can be found in Johnson & Perkinson's press release.
