AST Research Inc.: The Irvine-based company faces...
AST Research Inc.: The Irvine-based company faces a class-action lawsuit by shareholders claiming the computer company misled them about its acquisition of Tandy Corp.'s personal computer manufacturing operations last year.
The suit was filed Thursday in U.S. Central District Court on behalf of shareholders who bought AST stock between Aug. 5, 1993, and March 1, 1994. Defendants include AST Chairman Safi Qureshey, Chief Financial Officer Bruce Edwards and directors Wai Szeto, Richard Ottaviano and James Schraith.
An AST spokesman declined comment on the suit.
AST stock soared to a high of $33 after the company acquired the Tandy business for $175 million in July. But the stock began to drop March 1 amid rumors that AST has plans to cut prices.
The stock closed at $24 on the Nasdaq system Friday.
According to the suit, AST executives misled stockholders by saying the acquisition was consistent with the company’s objectives when, in fact, it was a “high-risk gamble.”