AMD in legal hot water with shareholders
AMD has been sued for allegedly lying to investors about the success of AMD’s Llano APU and “deceptively dismissing” the potential impact of unsold inventory on the company’s gross margins.
The allegations are in a new class action lawsuit filed in California.
It claims that CEO Rory Read, former CFO Thomas Seifert, and vice president Lisa Su, violated multiple sections of the Securities Exchange Act for making “false and misleading” statements about the success of Llano. Court documents claimed that the three talked about the “strong” and “significant” interest in Llano APUs. They also claimed that AMD’s desktop business was in a “strong position” and that it would “continue to rebound” in 2012.
