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The first high-performance accelerated processing unit (APU) from Advanced Micro Devices code-named “Llano” was not particularly successful product for the company: it launched late, its yields were lower-than-expected and its performance was not high. But Llano is yet to deliver its final blow to AMD: the company was sued this week for overestimating demand for the chip.

Robbins Geller Rudman & Dowd LLP this week said that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of AMD common stock during the period between October 27, 2011 and October 18, 2012. The complaint charges AMD and certain of its officers and directors with violations of the Securities Exchange Act of 1934.  AMD is a multinational semiconductor company that develops computer processors and related technologies for commercial and consumer markets.

The complaint alleges that during the class period, defendants made false and misleading statements about the AMD’s business and prospects. Specifically, the complaint alleges defendants made false statements and/or concealed adverse facts regarding AMD Llano APU, including repeatedly highlighting the “strong” and “significant” interest in, demand for, and unit shipments of, the Llano APUs, and falsely and misleadingly representing that AMD’s desktop business was in a “strong position” and that it would “continue to rebound” in 2012.  As a result of defendants’ false statements, AMD stock traded at artificially inflated prices throughout the from October, 2011, to October 18, 2012.

In July 2012, AMD announced that weak demand for Llano APUs in desktop devices, particularly in its Chinese and European markets, had resulted in AMD’s reporting of lower than expected revenue for the June 30, 2012 quarter. Low demand for Llano was conditioned by absense of FM1 mainboards in the channel (since due to low yields AMD initially shipped Llano chips to OEMs only). The revelation of this information caused the price of AMD stock to decline by nearly 25% on extremely heavy trading volume.  Then on October 18, 2012, the company announced that its gross margins for the fiscal 2012 third quarter had declined more than 31% from its previous quarter, in large part due to AMD’s recording of an approximate $100 million inventory write-down, mainly attributable to the overstated value of the Llano. On this news, the price of AMD stock declined nearly another 17% on extremely heavy trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of AMD common stock during the class period. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Tags: AMD, Llano, 32nm, Globalfoundries, Fusion, Radeon, Trinity, Richland, Kaveri, Business

Discussion

Comments currently: 17
Discussion started: 01/17/14 10:57:41 AM
Latest comment: 01/20/14 12:01:36 PM
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1. 
Slideware strikes back !!!
4 5 [Posted by: Tristan  | Date: 01/17/14 10:57:41 AM]
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- collapse thread

 
I request that you stop trolling this website until you are on our payroll and directed to do so.
2 0 [Posted by: Brian Krzanich  | Date: 01/18/14 04:19:31 AM]
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2. 
So let me get this... they lost money 1-2 years ago when the stock was plummetting... aand they only now found out about it??? Looks like shorts that bet on amd going banckrupt and were left in the dust when the stock almost doubled... this is stupid america for you. Al Bundy at its best! You can't take a decision when it matters nor can you man up to your mistake so you just invent a bogus complaint like this in the hope to tank the stock... geez you guys are really the lowest form of life on this planet, i really hope you're sterile as to not infect the gene pool with your attrocious stupidity and arrogance!
8 0 [Posted by: tcube  | Date: 01/17/14 05:47:11 PM]
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3. 
show the post
3 7 [Posted by: Wong Chee Wah  | Date: 01/17/14 08:05:51 PM]
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4. 
In America anyone can sue someone for anything. That doesn't mean they will prevail in court. Lawsuits by investors rarely ever succeed unless they can prove fraud, which is highly unlikely in this case. The siren chasers are always willing to take a chance on jackpot justice. Thankfully when it comes to financial future projections, the courts seldom side with the siren chasers.
8 5 [Posted by: beenthere  | Date: 01/17/14 10:15:13 PM]
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- collapse thread

 
Could this be a case of Intel vicariously attempting to cause financial damage to AMD? I wouldn't put it passed them.
3 4 [Posted by: linuxlowdown  | Date: 01/18/14 02:31:19 AM]
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We could assume that intel is involve. since its the only x86 there thats is a direct competitor. again, its just an expeculation.

3 2 [Posted by: xentar  | Date: 01/18/14 03:22:07 AM]
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5. 
I'm going to sue intel for their shitty chipsets that have had the USB3 bug for how many years now ???
6 1 [Posted by: alpha0ne  | Date: 01/18/14 04:11:12 AM]
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6. 
A press releases to do damage to the share price are common practice by traders trying to make a quick buck. Often they are without hard facts to back them up, when the misinformation is repudiated the damage is often done. The instigators of the rumors are very difficult to pin down as other organizations who report on hearsay often find that their sources were wrong, it is difficult to check on each story from the financial press as they are often just rumor mongers who have to fill copy daily.
2 0 [Posted by: tedstoy  | Date: 01/18/14 08:48:04 PM]
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7. 
Wankers
2 0 [Posted by: JBG  | Date: 01/20/14 04:16:49 AM]
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8. 
Brasil governants should be sued too. They keep doing the same thing year over year for... 20 years.
0 0 [Posted by: Hikari  | Date: 01/20/14 12:01:36 PM]
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