AMD wants to settle Llano APU security fraud lawsuit for $29.5 million

AMD's Llano processor is back in the news as the company is trying to settle a lawsuit with disgruntled investors. As we reported last year, the Llano security fraud case was granted class action status in November 2016.

The lead plaintiffs are the Arkansas Teacher Retirement System and KBC Asset Management NV. They accuse AMD of making false and misleading statements to investors between April 2011 and October 2012. The case pertains to what AMD told investors about the production, the launch, and the demand for its lano processors.

The Llano APU was delayed from 2009 to 2011 and AMD eventually had to write off $100 million in unsold inventory as the chip wasn't as good as was promised. After three years of paying fees to lawyers, AMD has agreed to pay $29.5 million to make the case go away.

As The Register reports, the settlement still needs to be approved by Judge Yvonne Gonzalez Rogers. More details are expected on October 9. The site claims the deal will be funded by AMD's insurers and that it includes no admission of guilt:

Now AMD is pitching a settlement to end the case before it gets to trial. Under the proposed deal, AMD's insurers will fund the $29.5m payment and the chipmaker will be able to continue to deny it did anything wrong.

The two sides say they will have more details on the specifics of the deal by October 9.