Class Action Lawsuit Filed Against Advanced Micro Devices

Strategic Insights -

A class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of persons who purchased the publicly traded securities of Advanced Micro Devices, Inc. ("AMD") between October 6, 1998, and March 8, 1999. The lawsuit alleges that AMD and its Chairman and CEO, William Sanders, III, issued a series of materially false and misleading public statements about the company's operations and prospects. The complaint claims that AMD's production and design problems with its flagship K6 microprocessor led to significant yield and production problems during late 1998, despite assurances from Sanders that the issues were resolved.

Key Takeaways:

  • The class action lawsuit was filed on behalf of persons who purchased AMD securities between October 6, 1998, and March 8, 1999.
  • The lawsuit alleges that AMD and its Chairman and CEO, William Sanders, III, issued false and misleading public statements about the company's operations and prospects.
  • The complaint claims that AMD's production and design problems with its flagship K6 microprocessor led to significant yield and production problems during late 1998.
  • Defendant Sanders allegedly assured investors that the issues were resolved, despite the problems ongoing.
  • The price of AMD shares dropped to approximately $17 per share after the company admitted to production problems, a 50% decline from the Class Period high.
  • The plaintiffs seek to recover damages on behalf of all purchasers of AMD publicly traded securities during the Class Period.
  • The plaintiffs are represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, with expertise in prosecuting investor class actions.
  • Milberg Weiss has been actively engaged in commercial litigation for over 30 years, with a reputation for excellence recognized by courts.

Statistics:

  • The price of AMD shares dropped 50% after the company admitted to production problems.
  • The period of the Class Period: October 6, 1998, to March 8, 1999.
  • The approximate number of shares traded: Not specified.
  • The total number of outstanding shares: Not specified.
  • The total potential damages: Not specified.
  • The number of law firms representing the plaintiffs: 1 (Milberg Weiss Bershad Hynes & Lerach LLP).
  • The number of years Milberg Weiss has been actively engaged in commercial litigation: 30.

Sources:

  • PRNewswire - press release announcing the class action lawsuit (No date specified).
  • Milberg Weiss website - firm's profile and experience (http://www.milberg.com).
  • Securities and Exchange Act of 1934.