Class Action Filed on Behalf of Advanced Micro Devices Investors Who Purchased, or Otherwise Acquired, AMD Securities Between February 21, 2017 and January 11, 2018
Advanced Micro Devices, Inc. (NASDAQ:AMD)
On January 16, 2018, a class action was filed against California-based Advanced Micro Devices, Inc. and certain of its officers in United States District Court, Northern District of California, (Kim v. Advanced Micro Devices, Inc., et al, No. 18-00321), on behalf of a class consisting of investors who purchased or otherwise acquired the securities of AMD between February 21, 2017 and January 11, 2018, both dates inclusive (the “Class Period”).
The class action lawsuit against Advanced Micro Devices seeks to recover compensable damages caused by the Advance Micro Devices Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Alleged Materially False and Misleading Statements and Failure to Disclose a Fundamental Security Flaw in AMD’s Processor Chips
According to the class action complaint, the AMD Defendants
. . . throughout the Class Period, . . . made materially false and misleading statements regarding [AMD’s] business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) a fundamental security flaw in AMD’s processor chips renders them susceptible to hacking; and (ii) as a result, AMD’s public statements were materially false and misleading at all relevant times.
On January 3, 2018, media outlets reported that Google Project Zero’s security team had discovered serious security flaws affecting computer processors built by Intel Corporation (“Intel”), AMD and other chipmakers. In a blog post, the Project Zero team stated that one of these security flaws—dubbed the “Spectre” vulnerability—allows third parties to gather passwords and other sensitive data from a system’s memory.
On January 3, 2018, in response to the Project Zero team’s announcement, a spokesperson for AMD advised investors that while its own chips were vulnerable to one variant of Spectre, there was “near zero risk” that AMD chips were vulnerable to the second Spectre variant.
Advanced Micro Devices Issues Press Release: “An Update on AMD Processor Security”
The class action complaint filed against AMD stated that in a post-market press release issued by Advanced Micro Devices on January 11, 2018, AMD acknowledged that its chips were, in fact, susceptible to both variations of the Spectre security flaw.
AMD CEO Lisa Su Confirms Susceptibility of AMD Products to Spectre Vulnerabilities & AMD Stock Drop
Further, according to the AMD class action complaint, on January 11, 2018, “. . . during an interview with Yahoo Finance, AMD’s Chief Executive Officer . . . Lisa Su confirmed news that its products were susceptible to Spectre vulnerabilities, stating: “to clarify, for Meltdown, AMD is not susceptible… we don’t have a susceptibility to that variant. But with Spectre, AMD is susceptible.” [Emphasis in original]
The price of AMD’s stock share price fell $0.12, or 0.99%, on this news to close at $12.02 on January 12, 2018.
Investors Who Purchased Advanced Micro Devices Stock Shares
If you purchased, or otherwise acquired AMD stock shares between February 21, 2017 and January 11, 2018, both dates inclusive, and have questions or concerns about your potential legal rights or claims, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].