Graphics card and chip maker ATI Technologies Inc. announced that it has reached an $8 million settlement in a class action lawsuit filed against the company in May, 2001.
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Almost two years ago the suit was brought against ATI in the United States District Court for the Eastern District of Pennsylvania. The plaintiffs alleged ATI misrepresented sales of its RAGE 128 and RAGE 128 Pro graphics hardware prior to a May 2000 earnings warning. ATI’s maneuvering garnered the attention of Canada’s Ontario Securities Commission, which subsequently served insider trading charges against ATI CEO Kwok Yuen Ho and several others. The commission alleges that Ho and others sold ATI stock to the tune of almost $8 million, ahead of the May warning, which badly devalued ATI’s stock.
The initial complaint, which included charges of insider trading, was narrowed in July to focus specifically on the alleged misrepresentations and omissions concerning both the sales of the RAGE 128 and RAGE 128 Pro chips and ATI’s inventory. ATI said the settlement includes no admission of liability or wrongdoing by the company or others.
ATI senior VP, Finance and CFO Terry Nickerson said today in a statement that ATI is pleased to have put the issue behind them. “We remain focused on executing our strategy of technology leadership and product innovation to build shareholder value,” Nickerson added.