Atari CEO David Pierce Resigns

Publisher Atari has announced that its CEO David Pierce has left the company following what its board of directors chair called a "difficult period in the Company's history," leaving chief restructuring officer Curtis Solsvig to act as interim CEO. Solsvig was appointed as restructuring officer in October by parent company Infogrames, following the removal of all but three board members earlier in the month. That move was prompted investor Coghill Capital Management to contact Atari's Board of Directors to express "serious concerns" regarding the moves. Coghill demanded that Atari's Board of Directors immediately reconstitute itself with a majority of independent directors, re-establish an independent audit committee, and "put an end to the sweetheart agreements with Infogrames." The call has thus far not publicly been commented on, but in the meantime, Atari's recently announced Q1 results showed sales for the quarter of $10.4 million, down from $19.5 million at the same time last year and losses of $11.9 million. Atari has said that an executive search is underway for a permanent replacement for Pierce. Said board of directors chairman Gene Davis, "We appreciate David's support and commitment through a difficult period in the Company's history and wish him well in his future endeavors."