AMD 1995 Annual Report Download - page 29

recover its costs and penalties, which is up to three times the costs of clean-
up activities, if appropriate. With regard to certain claims related to this
matter, the statute of limitations has been tolled. AMD has computed and
recorded the estimated environmental liability in accordance with applicable
accounting rules and has not recorded any potential insurance recoveries in
determining the estimated costs of the clean-up. The amount of environmental
charges to earnings has not been material during the last three fiscal years.
AMD believes that the potential liability, if any, in excess of amounts already
accrued with respect to the foregoing environmental matters will not have a
material adverse effect on the financial condition or results of operations of
AMD.
A notice dated October 3, 1994, was received by the Corporation from the
Department of Ecology of the State of Washington indicating that the Department
had determined the Corporation to be a potentially liable person for the release
of hazardous substances on a site located in Yakima, Washington. The
Corporation believes that the foregoing environmental matter will not have a
material adverse effect on the financial condition or results of operations of
the Corporation.
2. Edward McDaid v. Sanders, et al. (Case No. C-95-20750-JW, N.D. Cal.).
On November 3, 1995, an AMD shareholder filed a class action complaint against
AMD and several of its officers and directors. The complaint avers a single
claim for relief pursuant to Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934 and Rule 10b-5 promulgated thereunder. The alleged class consists
of all purchasers of AMD common stock during the period April 11, 1995, through
September 22, 1995. The plaintiff alleges that during this class period the
defendants made or caused AMD to make misleading statements with respect to the
development of the Corporation's AMD-K5(tm) microprocessor. The complaint seeks
class damages in an unstated amount, equitable relief, plus interest, attorneys'
fees, expert witness fees and other litigation costs. AMD intends to contest
the litigation vigorously. Based upon information presently known to
management, the Corporation does not believe that the ultimate resolution of
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Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 1996