Advanced Micro Devices, Inc.
- Company Name
- Advanced Micro Devices, Inc.
- Stock Symbol
- Class Period
- February 21, 2017 to January 11, 2018
- Motion Deadline
- March 17, 2018
- Northern District of California
The complaint charges Advanced Micro Devices (“AMD”) and certain of its officers with violations of the Securities Exchange Act of 1934. AMD manufactures semiconductor products, including microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products. The Company offers its products worldwide.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business, including that a fundamental security flaw in AMD’s processor chips rendered them susceptible to hacking. As a result of defendants’ false statements and/or omissions, the price of AMD stock was artificially inflated during the Class Period, reaching a high of $15.20 per share.
On January 3, 2018, the media reported that Google Project Zero’s security team had discovered serious security flaws affecting computer processors built by Intel Corporation, 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. 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.
Then, on January 11, 2018, after the market closed, AMD issued a press release acknowledging that its chips were, in fact, susceptible to both variants of the Spectre security flaw. On this news, the price of AMD stock fell $0.12 or nearly 1%, to close at $12.02 per share on January 12, 2018.