It almost looked like ATI was going to get off scott free after it was discovered that their (along with NVIDIA's) "HDCP ready" video cards weren't so HDCP ready after all. They sure gave it the old college try, covering their tracks on the website by modifying previous marketing material, and leaking pics of a forthcoming HDMI/HDCP card to the press, but it seems they didn't try hard enough, since a class action lawsuit is being levied at them. The suit alleges that since 2003 ATI has been claiming HDCP on certain video cards, but since that HDCP isn't fully realized (as in, it doesn't do the whole HDCP thing), ATI is in a breach of warranty, violating state consumer protection statutes, and a whole bunch of other wild lawyer-speak claims that don't seem so wild in this situation. We're still waiting for ATI to speak out about this, since they've been pretty mum on the whole affair, but we're not holding our breath.

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ATI sued for misleading HDCP claims