SAN DIEGO and SUNNYVALE, Calif., Jan. 24, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Advanced Micro Devices, Inc. (NYSE: AMD) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between October 27, 2011 and October 18, 2012 (the "Class Period"). Advanced Micro is a semiconductor company that designs, develops, and sells microprocessor products.
Advanced Micro Accused of Misstating Demand for Its Llano APU's
According to the complaint, shares of Advanced Micro fell $0.63, to close at $4.99 on July 10, 2012, after the company estimated that its second quarter 2012 revenues would decrease 11%. Days later, on July 19, 2012, the company issued its second quarter 2012 financial results, disclosing that its revenue for the June 30, 2012 quarter was lower than expected because demand for its 32 nanometer Llano Accelerated Processing Unit ("Llano APU"), a type of microprocessor that combines AMD's central processing unit and its graphics processing unit onto a single piece of silicon, was weak, particularly in its Chinese and European markets. On this news, shares of Advanced Micro declined an additional $0.64, to close at $4.22 on July 20, 2012, representing a nearly 25% overall decline. Then, on October 18, 2012, Advanced Micro announced that its gross margins for the fiscal 2012 third quarter had declined more than 31% from its previous quarter due to overstated value of the Llano APU. On this news, shares of Advanced Micro declined approximately 17%, to close at $2.18 per share on October 19, 2012.The complaint alleges that Advanced Micro made materially false and misleading statements to investors about the Llano APU, including repeatedly highlighting the strong and significant interest in, demand for, and unit shipments.
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