Investors are suing ATi

Investors are suing ATi

The management of graphics card specialist ATi is facing a total of 7 individual lawsuits on behalf of investors.

The plaintiffs accuse ATi of not having sufficiently informed the future investors at the time about the economic condition of the company. In particular, the following points have been neglected.

  • It was not mentioned that the demand for ATi graphics chips has fallen and this can only be compensated by price reductions
  • S3 and Neomagic were also Point in time with better and cheaper products on the market
  • Failure to write down the inventory and expectations that are too high for the results
  • incorrect estimates of future sales

The reason for this lawsuit is the unexpected nosedive of ATI shares after the company had to announce a sales and profit warning after a long period of success. Investors were reportedly unaware of the risk of investing in a technology stock.