Infogrames announced last week the removal of five of Atari's eight board members, as well as the appointment of a "Chief Restructuring Officer," which, according to Infogrames CEO Patrick Leleu, "will allow the group to get closer to achieving the key objectives of this (restructuring) plan." Infogrames named the five new board members yesterday.
In an SEC filing as a result of the move, however, Coghill said, "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." Coghill Capital holds over 1.2 million shares in Atari.
The company demanded the reconstitution of Atari's board with a majority of independent directors, an independent audit committee and "an end to the sweetheart arrangement with Infogrames," as well as compensation for "the serious damage they have caused both the Issuer and its public shareholders." They also said they would not acquire further shares or approve significant corporate transactions in the future if their demands were not met.