In the filing, the Ontario Securities Commission alleges that ATI failed to warn shareholders that it would report lower revenues and earnings in Q3 2000, and that executives -- including chairman and CEO, Kwok Yuen Ho -- sold shares just prior to telling the public. After that information was delivered on May 24, 2000, ATI's stock dropped by 42%. According to the OSC's allegations, Ho and his wife avoided a loss of $3.4 million (Canadian) using that insider knowledge. Six other ATI employees were also named by the OSC.
As a result, ATI's stock has fallen sharply over the last 24 hours. Shares yesterday lost 15%, and today ATI's stock has lost another 12% -- currently trading at $4.29. The allegations will likely open the floodgates for class-action lawsuits against the company.
A hearing is set for February 14.