- 4 -
Ampex’s stock began to decline in December 1999, which
coincides with the timing of a failed joint venture with
Information Superstation, LLC (ISS). On May 12, 1999, Ampex and
ISS agreed to jointly develop Executive Branch TV (EXBTV), a
video-based Internet Web site providing 24-hour coverage of the
White House and executive agency activities. By late 1999, the
joint venture had ended, and the parties accused each other of
wrongdoing. In December 1999, ISS filed a lawsuit against Ampex
in the Superior Court of the District of Columbia for theft of
corporate opportunity and breach of fiduciary responsibility.
Neither party disclosed the filing of the lawsuit until ISS
announced it during a press conference on February 10, 2000.2 In
a press release dated February 11, 2000, Ampex defended its right
to continue to operate EXBTV and disclosed that it had filed a
countersuit against ISS for fraud and misappropriation of funds
on February 1, 2000.
In December 1999, Ampex’s stock traded in a range of $4.4375
to $6.375 per share. By the end of February 2000, the stock had
declined to $3.875 per share. At the end of December 2000,
Ampex’s stock was trading at $0.375 per share.
2 In a U.S. Securities and Exchange Commission Form 8-K,
Current Report, filed on Feb. 10, 2000, Ampex acknowledged that
ISS had filed a lawsuit against the company but that it had yet
to be served with a copy of the complaint. The Form 8-K was not
introduced as part of the record in this case, but the Court
takes notice of this public filing.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011