Advanced Micro Devices has been hit with more than a dozen class-action lawsuits alleging that company officials made misleading statements about production problems with the company's K6-2 and K6-3 microprocessors.
The lawsuits, filed between March 10 and April 22, seek unspecified damages, equitable relief and other litigation costs. AMD expects the lawsuits to be consolidated into a single lawsuit in the next several months, the company said in a regulatory filing with the US Securities and Exchange Commission yesterday.
AMD's manufacturing history has been spotty at best, and throughout 1998 it was dogged by production problems related to its K6 family of chips.
Late last year the company offered assurances that the problems were behind it. But in January it acknowledged a design problem which it said had prevented it from producing as many faster processors as it would have liked in the last quarter of 1998.
The lawsuits allege various violations of federal securities law. Most of the lawsuits purportedly were filed on behalf of everyone who acquired AMD common stock between October 6, 1998 and March 8, 1999, AMD said in the regulatory filing.
All of the complaints charge AMD and individual officers with making "materially misleading statements and/or material omissions" about design and production problems relating to high-speed versions of the K6-2 and the K6-III, AMD said in the filing.
AMD plans to contest the lawsuits and doesn't expect them to have a "material adverse effect" on its bottom line, the company said in the filing.