You can add SGI to the long list of players to be clipped by the suit bug.
<Class Action Suit Filed by Spector & Roseman, P.C. Against Silicon
Graphics, Inc. and Its Officers and Directors Alleging Misrepresentations
And Insider Trading
SAN DIEGO, Dec. 3 /PRNewswire/ -- A class action has been commenced in the United States District Court for the
Northern District of California on behalf of purchasers of Silicon Graphics, Inc. (NYSE: SGI - news; ''SGI'') common stock
during the period from July 24, 1997 to October 6, 1997 (the ''Class Period'').
The complaint alleges that defendants made false and misleading statements about SGI's business and financial results in order
to artificially inflate the price of SGI stock to facilitate the exchange of a new SGI convertible security for $200 million of
outstanding zero coupon debentures, while the defendants sold 286,584 shares of their SGI stock, pocketing $7.4 million in
illegal insider-trading proceeds. After SGI successfully completed its exchange of convertible debt and after the insiders had
sold more than $7.4 million in their own SGI stock, the company revealed that its strong fourth quarter fiscal 1997 results had
been the result of pulling orders in from future quarters and that first quarter fiscal 1998 would suffer a huge revenue shortfall,
as would later quarters. SGI also revealed that it's CEO and Chairman, Edward McCracken, had been fired and that the
Company would be restructuring its organization. These revelations resulted in SGI's stock price dropping to less than $14
from its Class Period high of $30-5/16.>
It almost becoming fashionable <ggggg>
FWIW, I'm holding my shares of S3, strongly believing that if I wish to sell them, there would be a better opportunity than $6 a share in the foreseeable future. |
