SAN FRANCISCO (Reuters) - Shares of Advanced Micro Devices AMD.N fell more than 6 percent on Wednesday following reports linking the company’s former top executive to the largest U.S. insider trading scheme in history.
Hector Ruiz, now chairman of AMD-affiliated spinoff Globalfoundries, a chip maker, was said to have passed on confidential information regarding the spinoff to a hedge fund manager when he was AMD’s chief executive, an allegation first reported by the Wall Street Journal.
AMD spokesman Michael Silverman said on Wednesday that the company is conducting an investigation into the alleged link.
“We are investigating the situation, but we don’t have any more detail to discuss publicly,” he said, adding that no current or former employee has so far been charged with any crime nor any allegation of criminal misconduct.
Linking Ruiz to the insider trading scandal casts a dark cloud over newly created Globalfoundries, which was launched in 2008 and is considered an unlikely contender to heavyweight rivals TSMC (2330.TW) and UMC of Taiwan.
Shares of AMD fell 24 cents to $4.91 in early afternoon trading on the New York Stock Exchange.
Reporting by Ian Sherr; Editing by Derek Caney