Defective ATI Radeon HD 2400 and 2600 graphics cards were apparently released into circulation after the AMD graphics card diagnostic and validation software did not detect a bug in the ATI GPUs.

The problem in the cards appears to stem from an error in the BIOS application process. Numerous vendors reported that they have experienced a problem with the Radeon cards.

AMD countered that this is an easy fix, in that the BIOS simply needs to be reapplied to the cards after the cards have been returned to AMD.  It is estimated that approximately 20,000 to 30,000 GPUs have already been recalled and are on their way back to AMD. 

It is believed that the majority of the cards were purchased by manufacturers, with very few being purchased by consumers. AMD issued a statement that the release of the defective cards was an isolated incident and that it is has begun quickly addressing any concerns over the graphics cards.

More here.