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AMD Will Face a Securities Lawsuit

ilikemacandpc

At the heart of the matter is AMD’s Llano APU. Launched in 2011, in Q3 of 2012 AMD had to take an inventory write-down of $100 million on unsold Llano inventory, as the company had to further reduce prices on the chips in order to sell them in the face of competition from Intel along with the ramp-up of their own Trinity APUs. The writedown in this case did not directly cost the company $100M, but it essentially reduced the value of the company by that much to AMD’s shareholders, whose stock in turn suffered a hit in value. What makes this writedown lawsuit material are the events that led up to it and how AMD handled it. The participating investors are accusing AMD of committing securities fraud over how they presented the state of Llano production. The suit claims that Llano production was not as strong as AMD was claiming – a consequence of supply issues with GlobalFoundries’ 32nm process – and as a result AMD artificially inflated the value of the company in 2011 and 2012

That said, today’s ruling is only over whether the lawsuit can go to trial and not over the validity of the claims themselves,

http://anandtech.com/show/9132/amd-to-face-securities-fraud-lawsuit

 

Llano_575px.jpg

One of the accused Llano chips. It doesn't seem guilty... does it?

 

Well damn AMD. I was really rooting for you for a while, but this is not good if the claims are true. Granted, it is not as bad as Intel's anticompetitive practices in the old days, but it is still potentially bad. Despite consoles and potentially Zen next year, AMD is weak, and a lawsuit hitting it when it is already down could be pushing AMD on the road to oblivion. 

 

Another question to ask was why Llano and why AMD? AMD seems to be in the habit of overstating their position just like many other companies, and Bulldozer was another overhyped product. 

 

In any case, I don't think this will go to court. I don't know what evidence the prosecution has, but I bet it will be weak. 

 

Opinions?

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It's part of investing. By the time this picks up serious backing AMD stocks will be up again and no one will be complaining.

 

Granted, it is not as bad as Intel's anticompetitive practices in the old days, but it is still potentially bad.

They are still just as much victim today as they were years ago.

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AMD better settle.

They can barely afford RD to actually develop new products and keep their company alive, a legal battle of this magnitude might snuff out the flame for a while.

Actually a Samsung buyout would help em quite a bit with that.

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Just goes to add further weight to what many of us have been saying for years now,  All companies lie, cheat, say whatever to get the job done, but when one gets caught out everyone carries on like no one else does it.  It doesn't matter if you bought shares in AMD or GTX970 an unethical outcome is an unethical outcome.

 

Let's hope this is just a storm in a teacup or we might be looking at another takeover.  Part of me really hopes for a Samsung v Nvidia GPU shootout.  But I don't want to see AMD go the way of 3dfx. 

Grammar and spelling is not indicative of intelligence/knowledge.  Not having the same opinion does not always mean lack of understanding.  

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Actually a Samsung buyout would help em quite a bit with that.

I don't really see that helping either company. Yes Samasung can inject much needed funds for R&D and Samsung can use AMDs expertise for some things, but, and I could be wrong it won't work out. Once Samsung actually acquires AMD, then what? I could be and probably am wrong, but all I can see is them squandering the aquisition.

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I don't really see that helping either company. Yes Samasung can inject much needed funds for R&D and Samsung can use AMDs expertise for some things, but, and I could be wrong it won't work out. Once Samsung actually acquires AMD, then what? I could be and probably am wrong, but all I can see is them squandering the aquisition.

 

Well Samsung killing off big chunks of the company when acquiring it would be a lot better than AMD closing doors permanently due to unsustainable settlements and legal fees which is a very real possibility here.

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AMD historically always wins lawsuits

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AMD historically always wins lawsuits

because when they know they won't they settle instead.

Grammar and spelling is not indicative of intelligence/knowledge.  Not having the same opinion does not always mean lack of understanding.  

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It's part of investing. By the time this picks up serious backing AMD stocks will be up again and no one will be complaining.

 

They are still just as much victim today as they were years ago.

Yes, they're the victims because they potentially committed fraud.  Poor AMD.  How dare the investors ask questions about potential negligence.

 

Keep drinking that kool-aid.

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Yes, they're the victims because they potentially committed fraud.  Poor AMD.  How dare the investors ask questions about potential negligence.

 

Keep drinking that kool-aid.

What in the world are you going on about? My post was two part with the second stating Intel still does anti-competitive practices as we speak.

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Don't know why but kinda makes me happy.

When everything else Fails,Crowbar IT. - Half-life

 

Being a Linux user is sort of like living in a house inhabited by a large family of carpenters and architects. Every morning when you wake up, the house is a little different. Maybe there is a new turret, or some walls have moved. Or perhaps someone has temporarily removed the floor under your bed." - Unix for Dummies, 2nd Edition (Found in the .sig of Rob Riggs) 

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What in the world are you going on about? My post was two part with the second stating Intel still does anti-competitive practices as we speak.

Still though, you seemed incredibly dismissive about that fact they potentially lied to investors.

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All AMDs new hyped products better live up to it. All I'm gonna say. :/

- Fresher than a fruit salad.

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Still though, you seemed incredibly dismissive about that fact they potentially lied to investors.

Do clarify where exactly.

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Do clarify where exactly.

 

It's part of investing. By the time this picks up serious backing AMD stocks will be up again and no one will be complaining.

 

That seems to be implying that the investors will not be complaining when AMD stocks go up again, and that "It's normal in investment".  Fraud is not normal.

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That seems to be implying that the investors will not be complaining when AMD stocks go up again, and that "It's normal in investment".  Fraud is not normal.

I'm sorry but if you base your own investment on a companies own financial report than you're a failure of an investor that deserves to lose money. Those who invested aren't losing money it's just going to take them a lot longer to get it back. Right now it's all accusations so it could even turn up to be a load of bullshit. There's no reasons for jumping to conclusions as there's literally no evidence or verdict on the table.

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AMD better settle. 

 

They can barely afford RD to actually develop new products and keep their company alive, a legal battle of this magnitude might snuff out the flame for a while. 

2H13_Never_Settle_Forever_Bundle_FINAL_P

looks like amd will get even cheaper for Samsung if this goes wrong

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The shareholderd so realise, don't they, that if AMD has to pay where the money will be coming from...

I cannot be held responsible for any bad advice given.

I've no idea why the world is afraid of 3D-printed guns when clearly 3D-printed crossbows would be more practical for now.

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The shareholderd so realise, don't they, that if AMD has to pay where the money will be coming from...

 

I pondered this too, but I guess for those share holders it's about getting all their investment back and pulling out.  Not getting something out of the company and holding onto the shares.

Grammar and spelling is not indicative of intelligence/knowledge.  Not having the same opinion does not always mean lack of understanding.  

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AMD has not been found guilty of anything here so everyone hold your horses.

Too many ****ing games!  Back log 4 life! :S

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Hopefully Samsung buys amd and makes something out of it,else we are fuucked.

Intel/nvidia will rape our gamer butts.

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So some investors are unhappy with the direction AMDs share price went, and might have found an excuse to sue AMD for it. >.> Sounds a little difficult, unless they can point to a specific, material figure that AMD published that was factually incorrect.

 

Nvidia doesn't seem to have suffered too much from overstating the main memory on one of their cards by 0.5GB (although that lie was more directed at the consumers than at the shareholders).

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