Some investors in AMD, who purchased company stock between October 27,
2011 and October 18, 2012, filed a class action lawsuit against AMD,
through law firm Robbins Geller Rudman & Dowd. The class action alleges
that AMD and its officers and directors committed violations of the US
Securities Exchange Act of 1934. AMD allegedly misled its investors over
how popular its first generation "Llano" desktop APU would get, claiming
that there were much greater prospects for the APU than it actually
ended up selling.
The law firm detailing its suit writes:
The complaint alleges that during the Class Period, defendants made
false and misleading statements about the Company's business and
prospects. Specifically, the complaint alleges defendants made false
statements and/or concealed adverse facts regarding AMD's 32 nanometer
Llano (the "Llano") Accelerated Processing Unit ("APU"), which is a type
of microprocessor that combines AMD's central processing unit and its
graphics processing unit onto a single piece of silicon, 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 Class Period.
When AMD announced its Q2-2012 results in July of that year, it became
clear that there really wasn't the kind of demand for the APU that AMD
was playing up, AMD in its IR release stated that the markets where it
most expected the APU to sell - China and Europe, had lukewarm reception
of "Llano." This caused a fire-sale of AMD stock, when it saw a fall by
almost 25 percent on extremely heavy trading volume. In the following
quarter, on October 28, 2012, AMD announced a decline in its gross
margins for Q3 2012 declined 31 percent QoQ, due in part to the $100
million inventory write-down, following which AMD stock declined another
17 percent in a flash.
The Plantiff seeks to recover damages, who are represented by Robbins
Geller, a firm that specializes in class action suits against companies
that mislead their investors in a very big way. It would be interesting
to see how this case plays out, given that readers of content on sites
like ours most likely knew how fast AMD's K10 CPU and VLIW5 GPU
architectures were (given that they had each driven AMD's product stack
for several years), and what to expect from Llano, way back in 2011.
Source:
http://www.techpowerup.com/196941/amd-sued-for-overestimating-apu-success-to-investors.html
--
.~. Might, Courage, Vision. SINCERITY!
/ v \ 64-bit Ubuntu 9.10 (Linux kernel 2.6.39.3)
/( _ )\ http://sites.google.com/site/changmw
^ ^ May the Force and farces be with you!
_______________________________________________
Post Messages to: [email protected]
Subscription Maintenance: http://mail.leafe.com/mailman/listinfo/profox
OT-free version of this list: http://mail.leafe.com/mailman/listinfo/profoxtech
Searchable Archive: http://leafe.com/archives/search/profox
This message:
http://leafe.com/archives/byMID/profox/CAGv=MJDOjdKs9W0+tt+yx1+XRWxP3s98etXpJAkSC=+ywuj...@mail.gmail.com
** All postings, unless explicitly stated otherwise, are the opinions of the
author, and do not constitute legal or medical advice. This statement is added
to the messages for those lawyers who are too stupid to see the obvious.
