AMD Faces Class Action Law Suit.

[TechFan@ic]

Robbins Geller Rudman & Dowd LLP filed a class action law suit against AMD today.
So apparently AMD sold less Llano APUs than what  they originally expected and are now facing a class action law suit because of that.

 

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”), 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.

 

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. 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 “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Source

[EpicGeekonFire]

Cant get more lame than this...

[nsyedhasan]

Did Nvidia also have a class action law suit?

[Immort]

This is a tax on bad luck and the vultures can't wait to get their share.

[ajoy39]

"we don't understand how buying stock works, give us money"

[TheSLSAMG]

How hard should I laugh? Moderately hard, very hard, or so hard that I cough up a hairball?

[Imaginaerum]

Origin had the same suit with Battlefield 4... It'll probably go that direction too.

 

edit: by Origin I mean EA.

[TechFan@ic]

Did Nvidia also have a class action law suit?

Yes, it was about failing laptop GPUs. Nvidia settled out of court

[mr moose]

Some Investors lost a lot of money, And if a company insinuates or leads an investor to believe the market is better than it really is then that company can be held accountable, this is why the stock market has laws and requirements for companies to present their financials and be audited. AMD may have done the dirty, they may have been caught on a technicality or they may just be the unlucky with gross sales and the market downturn.  Either way the investors a have a right to sue for being mislead.

[Bluejay0]

How hard should I laugh? Moderately hard, very hard, or so hard that I cough up a hairball?

 

Cough up so many hair balls to refill my dad's head. He's seemingly starting to go bald...

[Yoinkerman]

If a single person bought amd stock solely because of the llano, maybe they deserve to lose their money.

 

Some Investors lost a lot of money, And if a company insinuates or leads an investor to believe the market is better than it really is then that company can be held accountable, this is why the stock market has laws and requirements for companies to present their financials and be audited. AMD may have done the dirty, they may have been caught on a technicality or they may just be the unlucky with gross sales and the market downturn.  Either way the investors a have a right to sue for being mislead.

[Ertman]

Some Investors lost a lot of money, And if a company insinuates or leads an investor to believe the market is better than it really is then that company can be held accountable, this is why the stock market has laws and requirements for companies to present their financials and be audited. AMD may have done the dirty, they may have been caught on a technicality or they may just be the unlucky with gross sales and the market downturn. Either way the investors a have a right to sue for being mislead.

Sue, yes. Win, no.

There is due diligence on the investors part. The financials of a company being public has little do with how you implied it in your post.

Basically ambulance chasers of the financial world.

[Fetzie]

Sue, yes. Win, no.

 

That will depend on the plaintiffs being able to prove that AMD deliberately misled investors or not. And I can imagine that something like that is extremely hard to prove.

 

If, on the other hand, AMD deliberately misled investors then they deserve the lawsuit.

[Ertman]

That will depend on the plaintiffs being able to prove that AMD deliberately misled investors or not. And I can imagine that something like that is extremely hard to prove.

If, on the other hand, AMD deliberately misled investors then they deserve the lawsuit.

It's not that hard to prove.

Investors have the right to sue if they believe they have been wronged. They deserve to win the lawsuit if they were deliberately misled and deserve to lose if they haven't.

Underperforming expectations does not equal misleading.

Correct me if I am wrong, it's not investors suing, it is a lawfirm creating business by creating a class action suit. It's not quite the same thing as investors starting a class action suit and happens all the time in the US.

[totjup5]

The reading on my stupid meter is maxed out right now.

[Kilerbomb]

"we don't understand how buying stock works, give us money"

How are you a gold contributor? TELL ME YOUR SECRETS!

[bob345]

well this just seems stupid. "you didn't do as successful as i though you where. you owe me money"

[mr moose]

well this just seems stupid. "you didn't do as successful as i though you where. you owe me money"

It could well be more like "you didn't do as well as you said you were doing, you owe me money"

[bob345]

It could well be more like "you didn't do as well as you said you were doing, you owe me money"

true, amd does have a history of over hyping their products and giving underwhelming results.

[ajoy39]

How are you a gold contributor? TELL ME YOUR SECRETS!

http://linustechtips.com/main/store/

[iruixos]

Excuse my language, but fuck those guys.

[JcGross]

No court is ever going to take this seriously. The plaintiff should've made their own market research before jumping into it.

[ForsakenLive]

They pulled off an OCZ

[afa7336]

No court is ever going to take this seriously. The plaintiff should've made their own market research before jumping into it.

 

I hope you understand that this could lead to a LOT more then just a lawsuit from investors. If I am reading this right, we're talking about SEC violations, which would hurt AMD massively if they got involved. Oh and as for the Court taking it seriously, it depends on what evidence they have. Since you haven't seen it, nor have I, you can't say that. But the Court will probably hear it, probably. And FYI, this guy isn't the only one investigating, just the first to file. 

 

For the court to certify a class action, as a class action four main criteria have to be met. *This is not a verdict, just the class action status.

 

*Numbers. There have to be more then a few, making it impractical for plantiffs to file their own suits against the defendant (in this case AMD. Not most lawyers won't file unless they can meet this).

**Same claims. Claims need to raise common legal and factual issues, making it efficient to deal with all claims together. (In this case, it seems so).

***Typical cases. All the cases are pretty much the same. 

****The named plaintiffs and class lawyers must look out for the interests of everyone in the class.

 

Edit: I'd like to add this law firm is GOOD, I mean GOOD. My guys whom I use, say they would never want to be in court with them. These are the guys that won the lawsuits against Enron, Motorola, AND Household International.

[exyia]

I can't wait to read this thread and how everyone is an expert on how the stock market works

 

:rolleyes:  :rolleyes:  :rolleyes:

 

to the topic - AMD has been non-stop disappointing investors for years since the acquisition of ATi. And with their mess of a marketing team, I'm not surprised

 

I still remember when AMD shares were worth $18+