The allegations are in a new class action lawsuit filed in California.
It claims that CEO Rory Read, former CFO Thomas Seifert, and vice president Lisa Su, violated multiple sections of the Securities Exchange Act for making “false and misleading” statements about the success of Llano.
Court documents claimed that the three talked about the “strong” and “significant” interest in Llano APUs. They also claimed that AMD’s desktop business was in a “strong position” and that it would “continue to rebound” in 2012.
They kept this up as late as April 19, 2012, the court documents said and insisted that were no “significant issues” in the important desktop market.
Then in July 2012, AMD announced that weak demand for Llano APUs in desktop devices, particularly in its Chinese and European markets, resulted in AMD’s reporting of lower than expected revenue for the June 30, 2012 quarter.
The three must have known or recklessly ignored, such lack of demand was compounded by a known, but undisclosed, “misalignment” between the amount of Llano APUs and desktop motherboards in AMD’s sales channel that originated in 2011, the writ runs.
The lawsuit also alleges that AMD did not properly disclose “then presently known trends, events or uncertainties” that might prove to be a risk to the success of Llano.
You can read the court documents here