Advanced Micro Devices (AMD) is not as insulated from the recent central processing unit (CPU) security flaw debacle, as the CPU manufacturer is now facing two class action lawsuits like its competitor Intel.
The lawsuits aim to acquire compensation from AMD for the damage it has caused with its misleading statements about the supposed safety of its CPUs against the Spectre and Meltdown security flaws. Earlier in the month, it can be recalled that AMD boldly claimed that their CPUs were unaffected by the said security flaws compared to their rival Intel, which is currently facing problems at court and the stock market due to the fallout of Meltdown and Spectre.
"Defendants during the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) a fundamental security flaw in Advanced Micro's processor chips renders them susceptible to hacking; and (2) as a result, Advanced Micro's public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages," as was stated in the lawsuit.
This means AMD might not have been as secure as it had been claiming since the Meltdown and Spectre issue blew up for Intel. Apparently, the lawsuit was targeting AMD's earlier statement stating that all variants of the security flaw, including Spectre and Meltdown were not something AMD users should worry about.
The company also claimed that its AMD CPUs, mostly from the Ryzen generation are not susceptible to the security flaws. This was due to the different architecture which AMD uses compared to Intel, where the company even claimed that there was near zero-risk for their CPUs. This, however, may not be the case based on the complaints in the lawsuit.
AMD also seems to be in big trouble for concealing the fact that they might have known about the said security flaws as well, like Intel, since last year but chose not to disclose it to the public in order to artificially inflate its stock price. Meanwhile, AMD is poised to defend itself and its reputation as a CPU manufacturer and believe the lawsuits to be without merit and to which they intend to vigorously defend against the claims.
