New York - An investor group that holds a 9.4% stake in struggling video game publisher Atari has voiced its displeasure with parent company Infogrames' recent decision to replace several board members as part of a restructuring plan.

"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," the investor group, Coghill Capital Management, said in a statement.

Coghill further demanded that Infogrames "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."

Infogrames chairman and CEO Patrick Leleu said last week that its move to ouster the Atari board members "will allow the group to get closer to achieving the key objectives" of its restructuring plan.

Related Links:
http://www.gamesindustry.biz/content_page.php?aid=29634

http://tinyurl.com/2b3wlc (DMW previous coverage)

http://www.coghillcapital.com

http://www.atari.com