by Anton Shilov
02/10/2003 | 06:56 PM
ATI Technologies announced that it has reached an agreement for the full and complete settlement of all remaining claims alleged in the shareholder class action lawsuits filed in May 2001 in the United States District Court for the Eastern District of Pennsylvania. This litigation relates to alleged misrepresentations and omissions made by the company and certain directors and officers during a period preceding its May 2000 earnings warning. In July 2002, the Court dismissed all claims in the litigation except as to the alleged misrepresentations and omissions concerning ATI’s Rage 128 and Rage 128 Pro products and inventory (it means that ATI should not announce strong sales of these products in late 1999 and early 2000). A Stipulation and Agreement of Settlement has been executed and filed with the court.
Under the terms of the settlement, the defendants have agreed to pay $8 million to resolve all claims. $3 million of this amount is expected to be paid by ATI's insurer. ATI will take a special charge for the net amount in its second quarter.<%BANNER[article]%>
The terms of the Stipulation and Agreement of Settlement, which are subject to final court approval and notice to class members, include no admission of liability or wrongdoing by the company or other defendants. The Court will hold a fairness hearing on April 25, 2003 to consider objections, if any, and to determine whether it will approve the settlement.