that parent company Infogrames has appointed a number of new faces to the Atari board, a group of Atari investors has questioned the move.
Next-Gen reports that Coghill Capital Management is unhappy with recent decisions, stating: These actions were taken without cause, without notice and without a shareholders' meeting, and in our opinion is just the culmination in Infogrames' treatment of the Issuer as its private source of assets and funds, and its oppression of the public shareholders.
As an investor, we have witnessed the steady deterioration of Atari's position, while Atari's controlling shareholder, Infogrames, has stripped Atari of assets via related party distribution agreements and payments by Atari of executive salaries that Infogrames should have borne.
We demand that the Atari's board immediately reconstitute itself with a majority of independent directors, re-establish an independent audit committee, put an end to the sweetheart agreements with Infogrames, and seek compensation from Infogrames and the Issuer's management for the serious damage they have caused both the Issuer and its public shareholders.”
Coghill Capital Management has over 1.2 million shares in Atari.