Wednesday, November 23rd 2016

AMD "Llano" Securities Fraud Lawsuit Ongoing; Class Action Status Granted

As you may remember, "Llano" was somewhat of a disappointment for AMD, to put it mildly. Production issues with partner Global Foundries meant that Llano's roll-out was affected and extended beyond its predicted time-frame. This, in conjunction with other various factors, such as lack of product appeal over disappointing performance and the usual competition from Intel, forced AMD to pull in its second-generation "Trinity" APU too soon. By the time production finally caught up, it ended up overproducing relative to diminishing demand, which resulted in unsold inventory, thus forcing an inventory write-down of "Llano" chips valued at around $100 million. This reduced the company's worth by nearly that much overnight, and tanked the value of the AMD stock. This, of course, didn't sit well with investors.

The as-of-yet ongoing securities fraud lawsuit over AMD's "Llano" APUs has just achieved a milestone, in having been authorized by the Court to proceed as a class action. The Court's decision doesn't imply that the defendants (Rory P. Read, Thomas J. Seifert, Richard A. Bergman, and Dr. Lisa T. Su) did anything wrong. The defendants have not been ordered to pay any money, no settlement has been reached, no money is available as of now and there is no guarantee that there will be in the future.
The lawsuit claims that investors suffered losses resulting from allegedly materially false and misleading statements Defendants made about the manufacturing and subsequent launch of, as well as the demand for, AMD's Llano microprocessor between April 4, 2011 and October 18, 2012, allegedly in violation of the Securities Exchange Act of 1934.

The Court decided that this lawsuit can proceed as a class action because it meets the requirements of Federal Rule of Civil Procedure 23, which governs class actions in federal district courts.In a class action, one or more people called "plaintiffs" sue on behalf of people who have similar claims. The Court must certify the action to proceed as a class action and appoint the "class representatives." All of the individuals and entities on whose behalf the class representatives are suing are known as "class members." Bringing a case as a class action allows the adjudication of many similar claims that might be economically too small to bring individually. One court resolves the issues in the case for all class members, except for those who choose to exclude themselves from the class.

The initial complaint in this action was filed January 15, 2014. After Arkansas Teacher Retirement System and KBC Asset Management NV were appointed as Lead Plaintiffs by the Court, they filed their Corrected Amended Class Action Complaint (the "Complaint") on June 11, 2014. Lead Plaintiffs allege that Defendants made materially false and misleading statements to investors about the manufacturing and subsequent launch of, as well as the demand for, its Llano microprocessor between April 4, 2011 and October 18, 2012, allegedly in violation of the Securities Exchange Act of 1934. Lead Plaintiffs further allege that the false and misleading statements inflated the price of AMD's common stock and that, when Defendants later disclosed the truth of the ongoing problems with Llano, AMD's stock price dropped. The Complaint, which contains all of the Lead Plaintiffs' allegations, is available here.

Defendants moved to dismiss the Complaint on July 7, 2014. On March 31, 2015, the Court issued an order denying Defendants' motion to dismiss.

On September 4, 2015, Lead Plaintiffs filed their motion for class certification. On March 16, 2016, the Court issued an order granting Lead Plaintiffs' motion, certifying the Class, appointing Lead Plaintiffs as "Class Representatives," and appointing Class Counsel.

The parties are currently engaged in discovery, and the deadline for completing discovery is March 3, 2017. The parties must file motions for summary judgment by April 7, 2017. No date for the trial has been scheduled. Sources: AMD Securities Litigation, Marketwatch
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24 Comments on AMD "Llano" Securities Fraud Lawsuit Ongoing; Class Action Status Granted

#1
Ungari
Are the Lead Plaintiffs fund managers that suffered losses after the stock fell in price?
If they continued to hold onto the stock I wonder if the current price would have given them a profit.
I'll be watching to see if this news has an effect on the current price of the stock.
Posted on Reply
#2
RejZoR
The Same Llano I keep bitching about for having absolutely shitty non-existent driver support? Call me surprised...
Posted on Reply
#4
Steevo
I see this as "we played the stock market and lost" boo fucking hoo. It just goes to reinforce that the stock market is NOT where you put your retirement dollars, as its volatile, the laws regarding investments are completely shit, and it only serves to enrich the trading firms, and they have NO liability with your money.

The Arkansas Teacher should be suing KBC Asset Management.
Posted on Reply
#5
CAT-THE-FIFTH
The Register mentioned it the same time as Wccftech:

http://www.theregister.co.uk/2015/04/01/amd_class_action_suit_greenlit/
Judge greenlights class-action suit accusing AMD of securities fraud
That is from April 1 2015 - the judge already approved the action last year??

Thats 18 months ago.

Emm,why has it suddenly become important to make a big headline in November 2016 for something that loads of the tech media reported on LAST year??

Slow news day??
Posted on Reply
#6
Ungari
CAT-THE-FIFTH, post: 3559323, member: 80906"
The Register mentioned it the same time as Wccftech:

http://www.theregister.co.uk/2015/04/01/amd_class_action_suit_greenlit/



That is from April 1 2015 - the judge already approved the action last year??

Thats 18 months ago.

Emm,why has it suddenly become important to make a big headline in November 2016 for something that loads of the tech media reported on LAST year??

Slow news day??
Because AMD ZEN and VEGA is coming Soon™
Posted on Reply
#7
64K
While I agree that investing in individual stocks is more or less gambling and that no one has a right to complain if they lose money. There is one big problem with what happened in this case (if proven).

From the article: "The lawsuit claims that investors suffered losses resulting from allegedly materially false and misleading statements Defendants made about the manufacturing and subsequent launch of, as well as the demand for, AMD's Llano microprocessor between April 4, 2011 and October 18, 2012, allegedly in violation of the Securities Exchange Act of 1934."

If the Plaintiffs can prove their case then it's going to cost AMD money in damages.
Posted on Reply
#8
m1dg3t
Can the world make a class action lawsuit against the people who caused the 2008 market crash? We all invested based on their BS, now we're all broke.

Ungari, post: 3559327, member: 165475"
Because AMD ZEN and VEGA is coming Soon™
Exactly. TPU showing their true colours.
Posted on Reply
#9
ADHDGAMING
Ungari, post: 3559327, member: 165475"
Because AMD ZEN and VEGA is coming Soon™
Yeah, feels like piling on before AMD releases its new products. Kinda suspect.
Posted on Reply
#10
Durvelle27
m1dg3t, post: 3559341, member: 84695"
Can the world make a class action lawsuit against the people who caused the 2008 market crash? We all invested based on their BS, now we're all broke.



Exactly. TPU showing their true colours.
^^^^^^
Posted on Reply
#11
Liquid Cool
As a proud owner of an HP Pavilion DV6-6135dx notebook computer, I'll disagree with any disparaging remarks against llano. Anyone that has had the privilege owning one of these devices would agree with me....of this, I am sure.

I love mine to this very day...although will agree about driver support. Especially video drivers. Pathetic at best.

Best Regards,

Liquid Cool
Posted on Reply
#12
Cruise51
I don't see anything wrong with Llano... Other than it arriving later than they said it would.
Posted on Reply
#13
eidairaman1
The Exiled Airman
ADHDGAMING, post: 3559345, member: 168394"
Yeah, feels like piling on before AMD releases its new products. Kinda suspect.
Feels like politics in technology, just like the slander by the Media on the next POTUS.
Posted on Reply
#14
R-T-B
eidairaman1, post: 3559562, member: 40556"
just like the slander by the Media on the next POTUS.
Can we keep questionable political statements out of this thread? Thanks.
Posted on Reply
#15
Raevenlord
News Editor
CAT-THE-FIFTH, post: 3559316, member: 80906"
This is very old news:

http://wccftech.com/class-action-amd-llano-apu/

Why is TPU reposting one and a half year old news??
CAT-THE-FIFTH, post: 3559323, member: 80906"
The Register mentioned it the same time as Wccftech:

http://www.theregister.co.uk/2015/04/01/amd_class_action_suit_greenlit/

That is from April 1 2015 - the judge already approved the action last year??

Thats 18 months ago.

Emm,why has it suddenly become important to make a big headline in November 2016 for something that loads of the tech media reported on LAST year??

Slow news day??
Ungari, post: 3559327, member: 165475"
Because AMD ZEN and VEGA is coming Soon™
m1dg3t, post: 3559341, member: 84695"
Exactly. TPU showing their true colours.
ADHDGAMING, post: 3559345, member: 168394"
Yeah, feels like piling on before AMD releases its new products. Kinda suspect.
Actually, if you followed the source links, you'd see that this piece of news is based on recent outings of the Court's decision, with Court documents, which originated on PRNewswire and MarketWatch, dated November 21st, 2016. Having the same information from two credible sources was what prompted the news piece. I, for one, was not aware that this had already come to light in other sites (no, I didn't check WCCFTech's nor The Register's one-year-old news, as you might expect), and couldn't find a post relating to this on TPU - hence why I posted. So the mistake on this being old news is on me, I admit. Thanks for the heads-up, though.

That said, what is reported is fact. I fail to see how this represents TPU smearing AMD's image, or "showing our true colors" - whatever that means. People should be critical enough to read the piece, and consider the implications on AMD's image. If they consider the usual profile of investors, this class-action lawsuit definitely paints AMD in better colors than its investors, who simply wanted to make a quick buck (not all of them, I posit, but most of them? Certainly). Also, if there's any fault with AMD on this case, it's simply less than stellar management on a difficult situation, with Global Foundries failing to deliver on AMD's timelines and strategy being the biggest issue here. But that's just my reasoning.
Posted on Reply
#16
dj-electric
I've known TPU for a decade.
Claiming this place is biased, people have to be insane.

Much respect, thanks for the info.
Posted on Reply
#17
Absolution
Dj-ElectriC, post: 3559669, member: 87186"
I've known TPU for a decade.
Claiming this place is biased, people have to be insane.

Much respect, thanks for the info.
Yea erm... i think the people at Overclock.net would like to have a word with you.

The forums are mostly pro-nvidia, such that discussion of AMD GPUs is difficult with suffering from flames from all directions.

heck, even the news editor had a bias against AMD
Posted on Reply
#18
Fluffmeister
ILvvvv, post: 3559516, member: 151762"
Llano was awful for everyone other than diehard AMD fan children. It was no Richland.
Turns out owning an AMD CPU/GPU combo doesn't really make you a true investor! Doh.
Posted on Reply
#19
R-T-B
Absolution, post: 3559684, member: 104804"
Yea erm... i think the people at Overclock.net would like to have a word with you.

The forums are mostly pro-nvidia, such that discussion of AMD GPUs is difficult with suffering from flames from all directions.

heck, even the news editor had a bias against AMD
Nuts... I always thought this place was pro-AMD lol...

Seriously, I have yet to see any evidence of what you claim outside of news threads, where everyone (and I mean everyone) gets bashed, NVIDIA, AMD, intel, or otherwise.
Posted on Reply
#20
Aquinus
Resident Wat-man
Dj-ElectriC, post: 3559669, member: 87186"
I've known TPU for a decade.
Claiming this place is biased, people have to be insane.

Much respect, thanks for the info.
You clearly haven't seen this thread:
https://www.techpowerup.com/forums/threads/amd-radeon-gpus-limit-hdr-color-depth-to-8bpc-over-hdmi-2-0.227941

When TPU points a finger at AMD because HDMI sucks, you know there is a problem. TPU didn't used to be biased but, I'm seeing it get gradually worse as time progresses.
Posted on Reply
#21
Ungari
Aquinus, post: 3559729, member: 102461"
You clearly haven't seen this thread:
https://www.techpowerup.com/forums/threads/amd-radeon-gpus-limit-hdr-color-depth-to-8bpc-over-hdmi-2-0.227941

When TPU points a finger at AMD because HDMI sucks, you know there is a problem. TPU didn't used to be biased but, I'm seeing it get gradually worse as time progresses.
I have serious suspicions that stem from GPU testing and benchmarks that are geared to favor Nvidia, and whose results always have a larger FPS spread than other sites.
Posted on Reply
#22
X828
I don't see any Biased post or remarks from TPU since they are well aware that without AMD we are doomed to pay insane prices for i3's and in the last 2 years since I have been a reader of the site (silent reader that is) I have seen nothing but fair based opinions and solid testing on everything AMD based vs Intel products. I was an avid AMD supporter untill I built my most recent system and my sons new rig he will be getting for christmas soon.
I built my first system in 1997 with an AMD 200Mhz CPU... atleast I think it was a K2 200.... hell thats been 20 years.... memory vades a bit in old age. But anyway I have used an AMD CPU in every system I have built up until 2013 and still would recommend them for those looking to save some cash. But I can't and will not accept the smoke and mirrors fiasco that has been going on for years now with them since Bulldozer was released. Phenom was decent but everything after that has been plain junk.

If AMD wants good solid press reviews about thier product then they need to produce something worthy of the Athlon 64 days.
Posted on Reply
#23
Ungari
X828, post: 3559981, member: 168007"
If AMD wants good solid press reviews about thier product then they need to produce something worthy of the Athlon 64 days.
AMD has had a long hard road to endure while trying to strengthen it's budget for R&D, and to be able to hire top talent.
There is every indication that they have grown into a stronger position with it's Global Foundries deal, and the Polaris release.
It is crucial that Zen and Vega are successful though, as this is the turning point for them after years of following their "Master Plan".

Posted on Reply
#24
Raevenlord
News Editor
Ungari, post: 3560018, member: 165475"
AMD has had a long hard road to endure while trying to strengthen it's budget for R&D, and to be able to hire top talent.
There is every indication that they have grown into a stronger position with it's Global Foundries deal, and the Polaris release.
It is crucial that Zen and Vega are successful though, as this is the turning point for them after years of following their "Master Plan".


True. I think AMD re-purposed (and steeled) themselves for a long game with their semi-custom business, and are now on the process of reaping those benefits. Their overall strategy speaks volumes - but I really hope ZEN is what the company needs and touts. I for one would gladly swap my i5 for a Zen-equivalent processor (only reason I went Intel was my Phenom 2 1055T and 6950 were getting really long in the tooth, and there was no viable AMD processor alternative...). And I am expecting a great price-performance VEGA card.

Competition drives innovation and better consumer prices. Why some people strive to defend their green, blue, or red prairies with such bravado is something I will never understand.
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