Mani,
AMD Struggles With Its Shareholders
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Friday March 26, 4:42 pm Eastern Time
Company Press Release
SOURCE: Spector & Roseman, P.C.
Spector & Roseman, P.C. Announces
Class Action Law Suit Filed Against
Advanced Micro Devices, Inc. And Its Chairman and
CEO on Behalf of All Purchasers of Advanced Micro
Devices, Inc. Publicly Traded Securities
PHILADELPHIA, March 26 /PRNewswire/ -- Spector & Roseman, P.C. announces
that a class action 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'')
(NYSE: AMD - news) between October 6, 1998 and March 8, 1999
(the ''Class Period'').
The complaint alleges that AMD and its Chairman and CEO, Walter J. Sanders, III,
violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The complaint charges that during the Class Period, defendants issued a
series of materially false and misleading public statements about AMD's
operations and earnings, including the purported success of its flagship
K6 microprocessor. Because of the issuance of these false and misleading
statements, the price of AMD's publicly traded securities were artificially
inflated during the class period. ("Ol Hutch" effect) The complaint
alleges that in January 1999, AMD disclosed for the first time that its
newest K6 chip was experiencing production and design problems, which had
resulted in significant yield and production problems during late 1998.
In response to this announcement, defendant Sanders assured investors that
AMD's problems were ''behind us now'' and that AMD was on track to post
strong performance in the first quarter of 1999. On March 8, 1999, AMD
shocked the market by announcing that the production problems which defendants
assured investors had been resolved had in fact adversely affected K6 production
throughout January and February of 1999, and that AMD would suffer a
''significant loss'' for the first quarter of 1999. This revelation caused
the price of AMD shares to plummet to approximately $17 per share, almost
50% below its Class Period high.
Plaintiffs seek to recover damages on behalf of all purchasers of AMD publicly
traded securities during the Class Period. The plaintiffs are represented
by the law firm of Spector & Roseman, P.C., who have expertise in prosecuting
investor class actions and extensive experience in actions involving financial
fraud.
Spector & Roseman, P.C., located in Philadelphia, Pennsylvania and San Diego,
California, concentrates its practice in complex litigation including actions
dealing with securities laws, antitrust, contract and commercial claims.
The firm is active in major litigation pending in federal and state courts
throughout the United States. The firm's reputation for excellence has been
recognized on repeated occasions by courts which have appointed the firm
as lead counsel in numerous major class actions involving violations of
the federal securities laws and the federal antitrust laws. As a result
of the efforts of the firm, and its members, hundreds of millions of dollars
have been recovered on behalf of thousands of defrauded shareholders and
companies.
The Firm is currently representing investors as lead counsel in actions
against S3, Inc., Altris Software, Dreyfus Aggressive Growth Fund, Mitcham
Corporation, Vivus, Inc., and Zapata Corporation. The firm is currently
representing businesses as lead counsel in the following antitrust actions:
In re Flat Glass Antitrust Litigation; In re Corrugated Paper antitrust
Litigation.
If you are a member of the Class described above, you may, no later than
sixty days from March 10, 1999, move the Court to serve as lead plaintiff
of the Class, if you so choose. In order to serve as lead plaintiff, however,
you must meet certain legal requirements. If you wish to discuss this action
or have any questions concerning this notice or your rights or interests,
please contact plaintiff's counsel Robert M. Roseman or Joshua H. Grabar
toll free at 1-888-844-5862 or via E-mail at spro@voicenet.com. For more
detailed information about the firm please visit its website at
spectorandroseman.com.
Make It So,
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