ATi under the gun?

They have no case. Conference calls and press releases are always preceeded by the "forward looking statements" disclaimer. If everyone who lost money on the stock market could start a class-action lawsuit, can we also start class actions against casinos for gambling losses? Of course not. Everyone knows the risks before they walk through the front doors. Funny, but I don't recall seeing these pop up last year when nVidia missed big time and dropped to $9 a share. They didn't even warn.

http://apps.ati.com/ir/PressReleaseText.asp?compid=105421&releaseID=723158

"Important Information Regarding Forward-looking Statements

Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions.

This MD&A and other sections of this news release contain forward-looking statements about ATI's objectives, strategies, financial condition and results. These "forward-looking" statements are based on current expectations and entail various risks and uncertainties. Our actual results may materially differ from our expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Therefore we cannot provide any assurance that forward-looking statements will materialize. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information concerning risks and uncertainties affecting our business and other factors that could cause our financial results to fluctuate is contained in our filings with Canadian and U.S. securities regulatory authorities, including our 2004 Annual Information Form and 2004 Annual Report filed on SEDAR at www.sedar.com."
 
CyFactor said:
They have no case. Conference calls and press releases are always preceeded by the "forward looking statements" disclaimer. If everyone who lost money on the stock market could start a class-action lawsuit, can we also start class actions against casinos for gambling losses? Of course not. Everyone knows the risks before they walk through the front doors. Funny, but I don't recall seeing these pop up last year when nVidia missed big time and dropped to $9 a share. They didn't even warn.
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I thought the real fuel behind the suits was that top level execs were dumping stock just before they lowered forecasts?
 
trinibwoy said:
I thought the real fuel behind the suits was that top level execs were dumping stock just before they lowered forecasts?
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If they're talking about Orton having announced that he was selling shares, he was well within SEC guidelines when he announced it. Jen sure didn't announce he was selling shares before nVidia missed, and he sold shares. I suspect this is nVidia PR driving negative press on ATI. But, that's just my opinion. Who knows. I'm no lawyer. It all just seems rather fishy timing since ATI is allegedly close to announcing the next generation products.
 
trinibwoy said:
I thought the real fuel behind the suits was that top level execs were dumping stock just before they lowered forecasts?
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and that exactly is the point. It's not about missing expectations or anything like that.
Its about insider trading. The same old story which already happened at ATI during the last CEO "Ho".

Definatly there are some serious flaws in ATIs management. As i said its not the first time.
They better concentrate on delivering products than on selling own stocks and options before the big bang - in this case 2 times cut down expectations (revenue and earnings warning) and finally missing them with their horrible financial results last quater. They get totally owned right now by the competition in the GPU desktop space so they better get their act together otherwise they will loose some more business. At least for ATI the xbox360 business will catch on very soon, so that can leverage their bad performance in the PC GPU space.

If they're talking about Orton having announced that he was selling shares, he was well within SEC guidelines when he announced it. Jen sure didn't announce he was selling shares before nVidia missed, and he sold shares. I suspect this is nVidia PR driving negative press on ATI. But, that's just my opinion. Who knows. I'm no lawyer. It all just seems rather fishy timing since ATI is allegedly close to announcing the next generation products.
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Cmon..., not everything negative about ATI has something to do with Nvidia. If they dumped their stocks before the company issued the earnings and revenue warning then investors have every right to sue them. This story is not about Nvidia or it's CEO its about ATI. At least as far as Nvidia goes Huang owns a rather huge number of Nvidia stocks because he founded that company with others - some thing which can't be said regarding ATIs current management.
 
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I don't read where they say anything about insider trading:

http://biz.yahoo.com/iw/050822/093607.html

"The case is pending in the United States District Court for the Eastern District of Pennsylvania against defendant ATI Technologies, Inc. and one or more of its officers and/or directors. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period, which statements had the effect of artificially inflating the market price of the Company's securities."

They're just griping that ATI's forward looking statements didn't pan out.

This story is not about Nvidia or it's CEO its about ATI.
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My comments about nVidia simply point out that they do not receive the same treatment. In other words, these lawsuits against ATI are biased and frivolous. It's my opinion.
 
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whql said:
http://www.ati.com/companyinfo/press/2004/4791.html
http://www.ati.com/companyinfo/press/2004/4797.html

both orton and ho publically entered into regulatory approaved trading plans during this period; if the lawyers are going after this then they are stupid.
Click to expand...

Looks like US ambulance-chasing lawyers are trying to make money out of suing ATI because they got caught out by unexpected market and technical difficulties. Greedy lawyers appealing to greedy shareholders - who'd-a-thunk it?
 
CyFactor said:
Funny, but I don't recall seeing these pop up last year when nVidia missed big time and dropped to $9 a share. They didn't even warn.
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I seem to remember that they (NV) was even rather optimistic about the NV30, and how the R300 was supposed to be no threat for it.
 
Bjorn said:
I seem to remember that they (NV) was even rather optimistic about the NV30, and how the R300 was supposed to be no threat for it.
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Yep. Talk about false and misleading statements.

And yet another one was announced this morning. Unbelievable.
 
This has nothing to do with Nvidia. You can not sit here and make judgment on these lawsuits by blindly saying that "Nvidia did the same thing with the NV30!". Nvidia and ATI have both had the SEC in their house. A couple of Nvidia's execs were investigated for insider trading and ATI has had a history of this type of behavior since 2001/2002 when they were sued for doing the same thing that is described in those lawsuits. You have to look at the forecasts that were provided to the shareholders over the time period mentioned in the suits and compare those to the results and the reason for their poor performance. You also have to look for red flags. One of the suits mentioned that some of the top execs cashed in on 53 million of sold shares during that time period. If ATI issued a highly-optimistic forecast AND the execs sold their shares, then they're going to have agents and/or lawyers rummaging through their laundry.

Once you mess up with your shareholders, you have to be extra careful or they will come after you again and again. You will also get investors who look at a previous lawsuit and figure if the stock doesn't perform well, I'll just sue them and make some money that way.
 
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ondaedg said:
If ATI issued a highly-optimistic forecast AND the execs sold their shares, then they're going to have agents and/or lawyers rummaging through their laundry.
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That's true of course, but it's just that i don't remember this happening with Nvidia when they did the same thing, if not worse.
 
How sad that every time something negative is posted about ATi the red boys have to defend themselves by saying" but Nvidia did it too!". Really really sad.
 
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Richthofen said:
problem is that Nvidia is not the topic here - IT'S ATI
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Lord knows the other company, either ATI or NVIDIA, is ever mentioned during any of these threads.

But please resume your giddy wish that ATI is sued out of business and the graphics industry thereby has less competition to drive technology forward and prices down. We'll rejoice at more years of GF3, GF3 TI, and GF4 (ohhh, a 2nd vertex unit after 1.5 years of waiting) like advancements.
 
John Reynolds said:
We'll rejoice at more years of GF3, GF3 TI, and GF4 (ohhh, a 2nd vertex unit after 1.5 years of waiting) like advancements.
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Though again, it's not like it's only one company with those type of advancements, R300, 350, 420.... Ooops, just mentioned the other, or rather other other company again .. :)

But i agree with you, some people are a little bit to happy when one if the IHV's get some crap thrown at them. We don't want any Intel PII 300 MHz at 1000$ type of deals in the GPU business.
 
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