News March 11, 01:26 Eastern Time
LOS ANGELES (March 11) BUSINESS WIRE -March 10, 1999--Pursuant to Section 21(D)(A)(3)(a)(i) of the Securities Exchange Act of 1934, notice is hereby given that a class-action complaint ("Complaint") was filed today in the United States District Court for the Northern District of California on behalf of all persons who purchased the common stock of Advanced Micro Devices Inc. ("AMD" or the "Company") (NYSE: AMD) between Nov. 12, 1998, and Jan. 13, 1999, inclusive (the "Class Period").
The Complaint charges AMD and its chief executive officer, Jerry Sanders, with violations of the federal securities laws and seeks damages under those laws.
In summary, the Complaint states that during the Class Period, defendants publicly projected increased demand for AMD's newest K6 microprocessor in the fourth calendar quarter for 1998, as well as a significant increase in AMD's market share relative to industry leader Intel Corporation.
Even as defendants disseminated the foregoing projections, however, they knew or recklessly disregarded that pervasive design and/or production problems with the K6 would prevent the Company from supplying the projected demand.
Because defendants failed to disclose these design and production problems to the investing public, investors believed AMD's pricing strategy was a success and that AMD was poised for a successful fourth quarter, prompting securities analysts to raise estimates for AMD's fourth quarter earnings. AMD's stock price rose quickly on defendants' misrepresentations, from just $17 per share on Oct. 22, 1998, to a Class Period high of $32 shortly thereafter.
When defendants revealed just weeks later, on Jan. 13, 1999, that design and production problems prevented AMD from meeting demand projected for the fourth quarter, that microprocessor sales in the fourth quarter were primarily from the Company's 300 MHz processor and not the Company's newer 400 MHz processor, and that AMD's quarterly earnings were significantly below analysts' estimates, the market was stunned, sending the price of AMD shares tumbling to $22-1/2, a single day decline of nearly 20%.
Plaintiff seeks to recover damages on behalf of Class members and is represented by the Law Offices of Lionel Z. Glancy, and other firms with significant experience in prosecuting class actions involving corporate fraud.
Those who purchased AMD stock during the Class Period may move the Court, not later than 60 days from March 10, 1999, to serve as lead plaintiff, although certain legal requirements must be met to serve in that capacity.
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