The End Of ATi?

Thanks Fotix who posted this in Back Page News. This overview of allegations from the Ontario Securities Commission is the complete list of allegations against ATi charging them with insider trading, lying and conduct contrary to public interest. This could have an extremely damaging effect on ATi as a company as well as damaging to employees and shareholders if the company stock tanks. The effect a negative outcome in this matter could have a huge impact on the industry as a whole. Here is a clip from the long list of allegations against ATi.

That between April 24, 2000 and May 2, 2000, K.Y. Ho and Betty Ho traded 494,900 ATI shares. At the time these shares were traded, they were in a special relationship with ATI and had knowledge of a material fact with respect to ATI that had not been generally disclosed. The material fact was that ATI would fall short of its forecasted revenue and earnings for Q3-2000. Of these shares, 240,900 ATI shares were sold from an account in the name of Betty Ho for total proceeds of approximately $6,954,279. By selling the shares prior to the issuance of the news release on May 24, 2000, K.Y. Ho and Betty Ho avoided a loss of $3,352,824. The remaining 254,000 shares were donated to charities from an account in the name of K.Y. Ho. By donating the shares prior to the issuance of the news release, K.Y. Ho was able to maximize his tax benefit and avoid a loss in the value of the shares of $3,585,100.
View: Overview of allegations from the Ontario Securities Commission

News source: [H]ard|OCP

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