Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against ATI Technologies Inc18 August 2005
Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") 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 - News) 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.
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Contact:
Lerach Coughlin Stoia Geller Rudman & Robbins LLP
William Lerach, 800-449-4900
wsl@lerachlaw.com
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Source: Lerach Coughlin Stoia Geller Rudman & Robbins LLP
Source: Business Wire
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