VIDIOTS IN THE NEWS
NEW YORK—Boardrooms at Warner Communications are still reverberating from shock waves following the announcement that its fourth quarter profits would drop some 50 percent due to Atari's inflated sales projections. Two stockholders, Meryl and Richard Glovin, recently filed suit against Warners here, charging that Chairman Steven Ross sold some 140,000 shares of his stock prior to a Dec. 8 announcement that Atari would not perform to expectations.
VIDIOTS IN THE NEWS
NAUGHTY, NAUGHTY ATARI
NEW YORK—Boardrooms at Warner Communications are still reverberating from shock waves following the announcement that its fourth quarter profits would drop some 50 percent due to Atari's inflated sales projections.
Two stockholders, Meryl and Richard Glovin, recently filed suit against Warners here, charging that Chairman Steven Ross sold some 140,000 shares of his stock prior to a Dec. 8 announcement that Atari would not perform to expectations.
Warner Communications previously revealed that other employees—including Atari Chairman Raymond Kassar and Executive Vice-President Dennis Groth—sold shares of Warner stock before the news was divulged.
Some financial experts contend that the sales are a possible violation of federal law prohibiting "insider trading."
When the Atari information was announced by Warners, the stock value dived about $25 a share.
The Glovin's class-action lawsuit joins several other legal challenges by investors. The Federal Trade Commission has also reportedly begun a probe into the matter.
It could not be substantiated that Bugs Bunny was being considered for a high-ranking executive post.