ATI Technologies Inc. has agreed to pay the
Ontario Securities Commission CDN$900,000 to settle charges that the company misled investors and did not provide timely disclosure of an earnings shortfall in 2000. The OSC is also reviewing allegations of insider trading against several ATI executives. ATI makes graphics chips used in personal computers and other devices. Several of Apple’s desktop and laptop models use ATI’s graphics chips.
ATI agreed as part of the settlement to provide a “letter of comfort confirming its practices and procedures related to trading and corporate governance.”
“Settlement with the OSC is in the best interests of the company, our employees and our shareholders. We are pleased to put the matter behind us and to continue to focus on company operations,” said ATI in a statement.
The OSC also said it will hold a hearing on Tuesday to consider a settlement reached with former ATI marketing administration manager Mary de la Torre and her husband, Allan Rae.
The OSC accused de la Torre and several other ATI executives including ATI founder K.Y. Ho of insider trading that resulted in taking more than CDN$7.9 million in profits, shortly ahead of a profit warning in 2000. That warning caused ATI’s share price to drop by more than half over 48 hours. The OSC is expected to convene a hearing to examine the allegations against the other executives named in the action later this week.
ATI (ATYT) was trading up 0.01 to 16.60 in mid-day trading on the NASDAQ exchange.