Topic: Activision Sued over Stock Manipulation... Old News?

[Cpt. Chaos]

Haven't been around lately, just ran into this story from a couple weeks ago, and didn't know if it had made the rounds here:


http://biz.yahoo.com/bw/040305/55529_1.html


Juicy tidbit:


"The complaint alleges that as part of their effort to boost the price of Activision stock, defendants misrepresented Activision's true prospects in an effort to conceal Activision's improper acts until they were able to sell at least $483 million worth of their own Activision stock, including a $250 million secondary offering by the Company. In order to overstate revenues and assets during the Class Period, Activision violated Generally Accepted Accounting Principles and SEC rules by engaging in an illegal accounting scheme."



Chaos    

[Khalee]

Yep old news

[TheBigCheese]

What does it mean in english?  

[Khalee]

Means ther'e trying to do a Martha Stuart I betcha.

[Rod O'neal]

Quote:
Means ther'e trying to do a Martha Stuart I betcha.  

This is even worse. I believe that all Martha Stuart got in trouble for was lieing when asked if she received any illegal inside stock tips. This is actually manipulating the value of the stock as to sell it off at a profit.

Kind of like the difference between knowing that a fighter is going to take a dive and betting on it and actually paying the fighter to take a dive and getting everyone else to bet against it.  

[feargusf]

Yeah, this sounds more Enron than Martha. We now have a new set of terms for corporate shenanigans.  

[Toasty0]

Quote:
What does it mean in english?  

It means Enron and Worldcom.

Best,
Jerry  

[Cpt. Chaos]

Haven't been around lately, just ran into this story from a couple weeks ago, and didn't know if it had made the rounds here:


http://biz.yahoo.com/bw/040305/55529_1.html


Juicy tidbit:


"The complaint alleges that as part of their effort to boost the price of Activision stock, defendants misrepresented Activision's true prospects in an effort to conceal Activision's improper acts until they were able to sell at least $483 million worth of their own Activision stock, including a $250 million secondary offering by the Company. In order to overstate revenues and assets during the Class Period, Activision violated Generally Accepted Accounting Principles and SEC rules by engaging in an illegal accounting scheme."



Chaos    

[Khalee]

Yep old news

[TheBigCheese]

What does it mean in english?  

[Khalee]

Means ther'e trying to do a Martha Stuart I betcha.

[Rod O'neal]

Quote:
Means ther'e trying to do a Martha Stuart I betcha.  

This is even worse. I believe that all Martha Stuart got in trouble for was lieing when asked if she received any illegal inside stock tips. This is actually manipulating the value of the stock as to sell it off at a profit.

Kind of like the difference between knowing that a fighter is going to take a dive and betting on it and actually paying the fighter to take a dive and getting everyone else to bet against it.  

[feargusf]

Yeah, this sounds more Enron than Martha. We now have a new set of terms for corporate shenanigans.  

[Toasty0]

Quote:
What does it mean in english?  

It means Enron and Worldcom.

Best,
Jerry