Hi everybody.
AMD and Intel are both now facing lawsuits following the announcement of what has become known as the Spectre and Meltdown CPU security leakage. Intel are facing three class litigations in regard to its actions or non actions dependent on how anyone looks at the situation. However although having only one action against it at present, AMD undoubtedly faces in that the most serious single action by far.
AMD stands accused of "artificially inflating" its stock price by not making public the CPU design flaw on initially knowing of the problem. The “problem” the tech world now knows as Spectre was known to AMD and its management many months before Google reported the problem to the worlds media according to the class-action lawsuit brought on behalf of AMDs investors.
Actions instigated in the northern district of California court state, "As a result of defendants' wrongful acts and omissions, the precipitous decline in the market value of the company's common shares, plaintiff and other class members have suffered significant losses and damages."
The above comes in the wake of similar class-action suits brought by intel disgruntled stockholders. However, the Intel actions at present does not accuse Intel of deliberately inflating its share price by suppressing information to the public following it having knowledge of the chip vulnerabilities. However that situation could very much change as the litigation’s progress beyond the above initial stages.
For AMD and its directors the action if successful could be extremely serious for them and AMD into the future.
Bill