ATI = corporate fraud

[malG]

ATI is being sued for insider trading, misleading stockholders and analysts to keep stock prices inflated so Orton, Crowley and Ho could dump their personal holdings of stock for more than it was worth before the REAL standing of the company became clear and the stock prices plummet.

Read the complaint: http://www.snlaw.net/PDF/ATITech.pdf

No wonder ATI shows dramatic market share gains in Q2'05 but still LOST money. Obviously they were selling their chips at a lost to gain market share. In contrast, NVIDIA's sales and market share declined but they made $75 million (net income) this past quarter :shocked:

"ATI widened its lead over NVIDIA in the desktop segment as compared to the prior quarter. In Q2'05, ATI's desktop graphics shipments grew 6.2% sequentially while NVIDIA?s desktop shipments fell 7.5%. ATI's gains on the desktop side came entirely from its line of integrated graphics devices, shipments of which increased more than three-fold during the period. On the discrete side, ATI's segment share remained essentially flat at 55.4% while NVIDIA?s segment share fell from 46.8% to 46.1% during the period."

Source: http://www10.dcccafe.com/nbc/articles/v....php?section=CorpNews&articleid=196302

ATI last quarterly: http://www.ati.com/companyinfo/ir/2005/atiq305.pdf

NVIDIA last quarterly: http://phx.corporate-ir.net/phoenix.zhtml?c=116466&p=irol-newsArticle&ID=742570

 

[nRollo]

Originally posted by: malG
ATI is being sued for insider trading, misleading stockholders and analysts to keep stock prices inflated so Orton, Crowley and Ho could dump their personal holdings of stock for more than it was worth before the REAL standing of the company became clear and the stock prices plummet.

Read the complaint: http://www.snlaw.net/PDF/ATITech.pdf

No wonder ATI shows dramatic market share gains in Q2'05 but still LOST money. Obviously they were selling their chips at a lost to gain market share. In contrast, NVIDIA's sales and market share declined but they made $75 million (net income) this past quarter :shocked:

"ATI widened its lead over NVIDIA in the desktop segment as compared to the prior quarter. In Q2'05, ATI's desktop graphics shipments grew 6.2% sequentially while NVIDIA?s desktop shipments fell 7.5%. ATI's gains on the desktop side came entirely from its line of integrated graphics devices, shipments of which increased more than three-fold during the period. On the discrete side, ATI's segment share remained essentially flat at 55.4% while NVIDIA?s segment share fell from 46.8% to 46.1% during the period."

Source: http://www10.dcccafe.com/nbc/articles/v....php?section=CorpNews&articleid=196302

ATI last quarterly: http://www.ati.com/companyinfo/ir/2005/atiq305.pdf

NVIDIA last quarterly: http://phx.corporate-ir.net/phoenix.zhtml?c=116466&p=irol-newsArticle&ID=742570

Interesting stuff.

Wonder why the execs would want to dump their stock with the bright Xbox/R520 future everyone on the boards predicts?

 

[Keysplayr]

What does this all mean? Will ATI execs be thrown in jail? Will ATI's doors close as a result of this? Do the execs feel the doors will close or the bubble will burst and so they dumped their stock? Will they prosper from this? No idea.

All this crap is mounting up. There is something huge going on at ATI. Unfortunately, I smell demise. This really sux. I think?

 

[nRollo]

Originally posted by: keysplayr2003
What does this all mean? Will ATI execs be thrown in jail? Will ATI's doors close as a result of this? Do the execs feel the doors will close or the bubble will burst and so they dumped their stock? Will they prosper from this? No idea.

All this crap is mounting up. There is something huge going on at ATI. Unfortunately, I smell demise. This really sux. I think?

Will we see Orton, Crowley, an Ho on "Americas Most Wanted" or "Cops"?

Bad boys, bad boys whatcha want
Whatcha gonna do when sherrif John Brown
come for you tell me whatcha gonna do.

Bad boys bad boys
Watcha gonna do, whatcha gonna do
when they come for you
Bad boys, bad boys
Watcha gonna do, watcha gonna do
when they come for you

When you were eight
And you had bad traits
You go to school and you learn the golden rule
So why are you acting like a bloody fool
If you get hot you must get cool

Bad boys, bad boys
Watcha gonna do whatcha gonna do
When they come for you (repeat)

You chuck it on this one
You chuck it on this one
You chuck it on mother and
You chuck it on you father
You chuck it on you brother and
You chuck it on you sister
You chuck it on that one and you chuck it on me

Nobody naw give you no break
Police naw give you no break
Soldier naw give you no break
Not even you idren naw give you no break

Why did you have to act so mean don't you know
You're a human being born of a mother with
The love of a father reflections come and reflections go
I know sometimes you want to let go
I know sometimes you want to let go

 

[DAPUNISHER]

Interesting stuff.

Wonder why the execs would want to dump their stock with the bright Xbox/R520 future everyone on the boards predicts?

The easiest to understand motivation of all, avarice. They chose poorly too, if these allegations are proven.

 

[malG]

The class action lawsuit was announced after markets closed yesterday. Hence ATYT (ATI) will plummet further when the market re-opens next week.

Source: http://www.bloomberg.com/apps/news?pid=10000082&sid=a41UdVAvpZLQ&refer=canada

 

[Ackmed]

Good job thinking everything you read is fact. Makes you look very foolish. Thinking they will fold is just idiotic.

FYI, NV was investigated for insider trading.

 

[malG]

Originally posted by: Ackmed
Good job thinking everything you read is fact. Makes you look very foolish. Thinking they will fold is just idiotic.

FYI, NV was investigated for insider trading.

AHMED,

While NVIDIA have had there own problem with insider trading but it looks like ATI employees have now been similarly caught out, albeit in ATI's case the top executives are involved hence the severity of the case.

 

[nRollo]

Originally posted by: Ackmed
Good job thinking everything you read is fact. Makes you look very foolish. Thinking they will fold is just idiotic.

FYI, NV was investigated for insider trading.

If you're talking about four years ago when some guys bought stock after learning of the Xbox contract, that's a bit different than what's going on here, don't you think? (IIRC those involved were dismissed)

 

[deadseasquirrel]

Originally posted by: keysplayr2003
All this crap is mounting up. There is something huge going on at ATI. Unfortunately, I smell demise. This really sux. I think?

While I agree it doesn't look too good, especially when they are nV's only real competition, I wouldn't cast the demise stone just yet. I happen to work for a company that has committed one of the largest corporate frauds ever. The execs are being convicted/sentenced now and this was all several years ago when it happened. If you follow that kind of news, you can guess who.

My point is that we have 40,000 employees, just had a huge bidding war for the company, and are being bought by a fortune 10 (? I think) company. We're doing well in a crowded, cutthroat field, after committing $12b in fraud and having execs indicted.

This is not a nail in ATI's coffin. But it will make it harder for them to be taken seriously by investors, which could end up stifling production, diminishing their talented staff, and ultimately make it hard for them to maintain thier focus. Yet, we suffered from all 3 of those and were able to hang around.

 

[malG]

Interestingly there is a previous class action lawsuit (which ATI lost) for a similar offence. However, it's far from the severity of this recent lawsuit since the top executives were not directly implicated in the earlier class action lawsuit.

Source: http://securities.stanford.edu/1018/ATYT01/

 

[MBrown]

it will be nteresting to see where this goes.

 

[Ackmed]

Originally posted by: Rollo

Originally posted by: Ackmed
Good job thinking everything you read is fact. Makes you look very foolish. Thinking they will fold is just idiotic.

FYI, NV was investigated for insider trading.

If you're talking about four years ago when some guys bought stock after learning of the Xbox contract, that's a bit different than what's going on here, don't you think? (IIRC those involved were dismissed)

Except we dont know for fact what is, or not going on. Assuming everything you read is the truth, is not a good idea. Which is what I was getting at. malg has already convicted ATi, and thats just ignorant.

 

[nRollo]

Originally posted by: Ackmed

Originally posted by: Rollo

Originally posted by: Ackmed
Good job thinking everything you read is fact. Makes you look very foolish. Thinking they will fold is just idiotic.

FYI, NV was investigated for insider trading.

If you're talking about four years ago when some guys bought stock after learning of the Xbox contract, that's a bit different than what's going on here, don't you think? (IIRC those involved were dismissed)

Except we dont know for fact what is, or not going on. Assuming everything you read is the truth, is not a good idea. Which is what I was getting at. malg has already convicted ATi, and thats just ignorant.

That is true, all deserve their day in court. Contrary to what some may think of me, I have no desire to see ATI crumble.

I miss the days when there were LOTS of cards to try- 3DFX, S3, ATI, nVidia, Matrox. Things were more fun back then, I'd rather see a market with 5-6 very profitable firms spending a lot on R&D and pushing the technology forward.

I used to buy at least one video card a month, often more, when there were more choices. I had a running joke with a couple guys at the office where I'd come in and say "Guess what I bought" to which the reply was always "A new video card".

 

[Keysplayr]

Originally posted by: Ackmed
Good job thinking everything you read is fact. Makes you look very foolish. Thinking they will fold is just idiotic.

FYI, NV was investigated for insider trading.

AND?.......

Why shouldn't we believe there are allegations? Why shouldn't we believe there is a class action lawsuit? Why shouldn't we believe that this is possible in light of all the ATI controversy of late? Why do you believe it's necessary to call people foolish and idiotic and ignorant? Are you trying to discredit a Bloomberg press release? Talk about idiotic.
It's official. You have no brain.

You felt the need to post that NV was under investigation because why? Did you think this thread was made to slam ATI? Do you think everything is ATI vs. Nvidia? Can you not think beyond that boundry?

 

[Busithoth]

Wow, I love ATI. I'll keep an eye on this. If their stock takes a big dip, I might buy some.
I don't think this is the death knell of anyone. It does confirm my suspicion that ATI's lost this round, though. Big time.

 

[Hacp]

News and Politics anyone? Could get dirtyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy.

 

[coomar]

you do realize that ati settled with the canadian government on this and paid some trivial fine (if you get caught for insider trading that means you have a lot of money, why not put out some huge fine)

this is very old

the class action is new though

 

[nRollo]

Originally posted by: Busithoth
Wow, I love ATI. I'll keep an eye on this. If their stock takes a big dip, I might buy some.
I don't think this is the death knell of anyone. It does confirm my suspicion that ATI's lost this round, though. Big time.

There's some sense to this: you would think they would be buying stock if they had confidence in the upcoming product line, not dumping it.

This sort of thing must be getting to be "matter of course" for Ho: ATI just paid $900,000 in fines for profiting millions back in 2000 for doing the same thing.

http://www.macworld.com/news/2005/03/29...p?lsrc=mcweek-0401/%3Flsrc=mcweek-0401

Where is the "honest, work ethic" firm Ghandi Instinct tells us of?
A. Lining their pockets with duped investor money apparently. You'd think these guys would be rich enough they wouldn't have to rob the middle class. :|

This hasn't been proven yet, but it will make for interesting discussions as the case plays out to be sure.

 

[nRollo]

Originally posted by: coomar
you do realize that ati settled with the canadian government on this and paid some trivial fine (if you get caught for insider trading that means you have a lot of money, why not put out some huge fine)

this is very old

the class action is new though

The suit they settled on is 5 years old. These allegations are very recent, the malfeasance allegedly happened this year.

 

[Matt2]

So, ATI isnt the knight in shining armor everyone thinks they are.

I hope R520 owners arent gonna have to pay a luxury on their cards to pay for legal fees..

:thumbsdown:

 

[malG]

The concise complaint in plain English: http://www.lerachlaw.com/lcsr-cgi-bin/m...ase=atitechnologies&templ=case-pr.html

 

[Marsumane]

I have confidence in the company staying alive. Just this product launch they may have thought that their solution wasnt up to par to the competitions so they sold their stock and made it seem as if their sales were going up to help ATI's ego. That is my speculation.

 

[ArchAngel777]

Originally posted by: keysplayr2003

Originally posted by: Ackmed
Good job thinking everything you read is fact. Makes you look very foolish. Thinking they will fold is just idiotic.

FYI, NV was investigated for insider trading.

AND?.......

Why shouldn't we believe there are allegations? Why shouldn't we believe there is a class action lawsuit? Why shouldn't we believe that this is possible in light of all the ATI controversy of late? Why do you believe it's necessary to call people foolish and idiotic and ignorant? Are you trying to discredit a Bloomberg press release? Talk about idiotic.
It's official. You have no brain.

You felt the need to post that NV was under investigation because why? Did you think this thread was made to slam ATI? Do you think everything is ATI vs. Nvidia? Can you not think beyond that boundry?

/pwned

 

[Wreckage]

Anybody here own stock? :Q