AMD Faces Class Action Law Suit.

[iSuzak]

Slap those guys !

[0vert]

I bet some lawyers at that firm lost some money on AMD. Companies over estimate their profits all the time.

 

They gambled, they lost, they can get over it like the rest of us.

[afa7336]

I bet some lawyers at that firm lost some money on AMD. Companies over estimate their profits all the time.

 

They gambled, they lost, they can get over it like the rest of us.

 

Errrr, you might want to understand what they are filing over before commenting. Its going to make you look totally stupid, because this is NOT how the market works, and you're playing armchair without the knowledge you need. Here, I will quote from the actual court filing. If AMD did this, then they are guilty and have to pay.

 

"4. During the Class Period, defendants repeatedly highlighted the “strong” and “significant” interest in, demand for, and unit shipments of, its Llano APUs. Defendants falsely and misleadingly represented that AMD’s desktop business was in a “strong position” and that it would “continue to rebound” in 2012. As late as April 19, 2012, defendants stated that the demand for the Llano APU was “higher than anticipated,” particularly in the “emerging markets” and that there were no “significant issues” in the important desktop market. Defendants, however, concealed that demand for Llano APUs in desktop devices was much weaker than suggested by their statements, especially in its Chinese and European markets.

5. In July 2012, AMD announced that weak demand for Llano APUs in desktop devices, particularly in its Chinese and European markets, resulted in AMD’s reporting of lower than expected revenue for the June 30, 2012 quarter. As defendants knew or recklessly ignored, such lack of demand was compounded by a known, but undisclosed, “misalignment” between the amount of Llano APUs and desktop motherboards in AMD’s sales channel that originated in 2011. In addition, defendants acknowledged that the issues causing AMD’s revenue shortfall (i.e., those causing reduced desktop-related Llano sales in AMD’s distribution channel) were “largely in our control.”

6. The revelation of this information caused the price of AMD stock to decline by nearly 25% on extremely heavy trading volume.

7. Thereafter, when questioned by analysts, defendants deceptively dismissed the notion that AMD’s future gross margins would be adversely affected by the large amount of unsold Llano inventory, when such inventory was unsalable, even at heavily discounted prices.

8. Then just weeks later, the Company announced that its gross margins for the fiscal 2012 third quarter 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. "

 

Source: HERE

 

Edit: I'm reading the filing right now, and update on anything interesting. Big props to my man for pointing me to it.

[TymmVonD]

@TechFan@ic

 

I'm sure anyone who followed CES and watched the live press events saw that it wasn't an event for consumers. The keynotes were in full Tel-evangelist mode preaching to the investors. I watched one or two events where I thought, "Yeah, I like what direction (company) is going." If I were in shape to invest, these events could've been the tipping point for where I "throw my money". lol. ...but that's what it's for. It boosts investor confidence, and that's where "innovation"/project building/R&D begins. It sucks where you're the little guy investing. The big contributors have room to take on more risk. If I were to lose my savings, I would definitely be watching old press events to spot any discrepancies. You can't lie to investors. If Shadowplay was a huge letdown, believe it, suits would've followed. That's why companies will label a product or feature Alpha/Beta/Preview.

[kuddlesworth9419]

Well I do see where they are coming from but on the other hand it is their own fault for trusting another company. If AMD did give a false amount of shipments then there is obviously a problem. It would be like a game reviewer giving a game a really good review but then the game turns out to be utter sh*t. But I don't see AMD giving out false information on something as important as this so I am calling baloney on this law suit.

[afa7336]

Well I do see where they are coming from but on the other hand it is their own fault for trusting another company.

 

Wrong, its actually illegal and you can find yourself in criminal/civil court for lying to your investors. Its not the fault of any shareholder. Having been and also currently a shareholder in a few companies (neither of which are AMD or Nvidia), if they flat out lied, I'd go after them with everything I had.

 

 

If AMD did give a false amount of shipments then there is obviously a problem.

 

Well, it seems that they misled more then just that, though that will be settled in court. We've also got some statements made to the SEC, that could come back to haunt them. The SEC doesn't exactly play nice.

 

 

If AMD did give a false amount of shipments then there is obviously a problem. It would be like a game reviewer giving a game a really good review but then the game turns out to be utter sh*t.

 

Its actually a lot worse then that. You see, they are alleging that AMD not only made false statements to its shareholders and the SEC by failing to disclose and correct information, but willfully manipulated its stock prices by artificially inflating the stock market and its stocks. This won't end AMD mind you, but this could be a LOT bigger then anyone here, except maybe one or two people realize. If this goes down big, it'll hurt AMD to the core though.

 

 

But I don't see AMD giving out false information on something as important as this so I am calling baloney on this law suit.

 

Having read the filing, it does look damning for AMD, and also did a lot more research on it, the whole filing is all facts. Gotta remember, all this is public. Shareholder statements, SEC filings, financials, everything is totally open to the public. But I'll and we'll have to wait to see how it unfolds.

[0vert]

 

Errrr, you might want to understand what they are filing over before commenting. Its going to make you look totally stupid, because this is NOT how the market works, and you're playing armchair without the knowledge you need. Here, I will quote from the actual court filing. If AMD did this, then they are guilty and have to pay.

 

"4. During the Class Period, defendants repeatedly highlighted the “strong” and “significant” interest in, demand for, and unit shipments of, its Llano APUs. Defendants falsely and misleadingly represented that AMD’s desktop business was in a “strong position” and that it would “continue to rebound” in 2012. As late as April 19, 2012, defendants stated that the demand for the Llano APU was “higher than anticipated,” particularly in the “emerging markets” and that there were no “significant issues” in the important desktop market. Defendants, however, concealed that demand for Llano APUs in desktop devices was much weaker than suggested by their statements, especially in its Chinese and European markets.

5. In July 2012, AMD announced that weak demand for Llano APUs in desktop devices, particularly in its Chinese and European markets, resulted in AMD’s reporting of lower than expected revenue for the June 30, 2012 quarter. As defendants knew or recklessly ignored, such lack of demand was compounded by a known, but undisclosed, “misalignment” between the amount of Llano APUs and desktop motherboards in AMD’s sales channel that originated in 2011. In addition, defendants acknowledged that the issues causing AMD’s revenue shortfall (i.e., those causing reduced desktop-related Llano sales in AMD’s distribution channel) were “largely in our control.”

6. The revelation of this information caused the price of AMD stock to decline by nearly 25% on extremely heavy trading volume.

7. Thereafter, when questioned by analysts, defendants deceptively dismissed the notion that AMD’s future gross margins would be adversely affected by the large amount of unsold Llano inventory, when such inventory was unsalable, even at heavily discounted prices.

8. Then just weeks later, the Company announced that its gross margins for the fiscal 2012 third quarter 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. "

 

Source: HERE

 

Edit: I'm reading the filing right now, and update on anything interesting. Big props to my man for pointing me to it.

 

 

I stand corrected. Will be interesting to see what they uncover in discovery.

 

Got any info on the statements they made to the SEC?

[Jaybird]

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

when did these go up?

[ajoy39]

when did these go up?

yesterday

[Jaybird]

yesterday

oh good. I hate being behind. like when you go on vacation for a week and you get back and your town has sprung up some new buildings and you are dazed and confused and saying WTF i was only gone a week. 

[LAwLz]

I just love how people on this forum were going "yeah serves them right" when it was EA being sued for trying to increase stock prices, but now that it's AMD everyone is going "it's not fair".

If AMD lied about something (not just "we expect to sell X chips") like how many chips they have sold in the past then they deserve to get sued. If this is all based on speculation and they didn't lie then they should not be sued. That's just my 2 cents though, and I said the same thing about EA.

[ShiverMePenguins]

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.

most of those laws you mention apply to financial accountants and investors to prevent their accounts (people) from getting into investments that they have no reason to. like old people getting into high risk investments.

[Eddyall]

Worst case scenario for AMD, they go bankrupt in a few years.

 

What would happen then?

Because nVidia gets the monopoly in a few domain and Intel would in a couple others too, unless ARM and IBM counts as competitor.

[Grave]

Reminds me of what might happen to Kaveri.

Worst case scenario for AMD, they go bankrupt in a few years.

What would happen then?

Because nVidia gets the monopoly in a few domain and Intel would in a couple others too, unless ARM and IBM counts as competitor.

I don't think AMD is gonna go bankrupt over this. Maybe lose a crap-ton of money but nothing they can't handle with sales.

[TERAFLOP]

Wrong, its actually illegal and you can find yourself in criminal/civil court for lying to your investors. Its not the fault of any shareholder. Having been and also currently a shareholder in a few companies (neither of which are AMD or Nvidia), if they flat out lied, I'd go after them with everything I had.

 

Well, it seems that they misled more then just that, though that will be settled in court. We've also got some statements made to the SEC, that could come back to haunt them. The SEC doesn't exactly play nice.

 

Its actually a lot worse then that. You see, they are alleging that AMD not only made false statements to its shareholders and the SEC by failing to disclose and correct information, but willfully manipulated its stock prices by artificially inflating the stock market and its stocks. This won't end AMD mind you, but this could be a LOT bigger then anyone here, except maybe one or two people realize. If this goes down big, it'll hurt AMD to the core though.

 

Having read the filing, it does look damning for AMD, and also did a lot more research on it, the whole filing is all facts. Gotta remember, all this is public. Shareholder statements, SEC filings, financials, everything is totally open to the public. But I'll and we'll have to wait to see how it unfolds.

Why not join the suit ? you clearly despise all that is AMD.

I really don't see what AMD (or any individual at AMD) can gain by allegedly artificially preventing the stock prices from collapsing. Insider trading can happen through much simpler means.

Nvidia & Intel overestimate sales almost on a quarterly basis.

In 2008-9 Nvidia had lost so much money on making the Tesla (GTX 200 series) GPUs that they actually secretly halted manufacturing and when shortages began they blamed it on "unexpected demand" when in fact they created the shortages themselves because they weren't making any money on GT200 and even publicly lied about having EOL'd the products.

So if Nvidia can get away with is basically now being alleged against AMD I can't see how this lawsuit can go through.

[afa7336]

Why not join the suit ? you clearly despise all that is AMD.

 

I love this argument ignorant people bring, if you say anything bad about AMD, you hate them. In fact, I own AMD products I don't mind AMD at all. This is a straight up assessment of the situation. As for me joining the suit, how can I? I already said above that "Having been and also currently a shareholder in a few companies (neither of which are AMD or Nvidia)", that kind of negates me from joining don't you think? I mean, did you read what I typed or just went off because you must defend AMD because AMD is God in your eyes? My guy that manages my stuff, actually recommended NOT investing in AMD nor Nvidia (fyi and I did take his advice), but I add a caveat to that, that this was Feb. 2012 and NOT current. I actually have a more diverse profile that nets me a good return.

 

 

 

I really don't see what AMD (or any individual at AMD) can gain by allegedly artificially preventing the stock prices from collapsing.

 

I honestly don't have time to explain the stock market, and how it works. Suffice to say, you don't know what you are talking about. Please, just stop, you'll embarrass yourself. Just an FYI, its not only a civil issue, the SEC can file criminal charges in these cases. With the allegation and proof according to the court documents and SEC filings (which is publicly available) that they also stated the same lies to the SEC, its going to get nasty, I bet. Been done before, be done again.

 

 

Insider trading can happen through much simpler means.

 

This is NOT insider trading, right now. Could it lead to that, maybe, but no one has facts about that. It depends on what the individuals within AMD did with their knowledge and stocks.

 

Edit: Your rant about Nvidia, seriously? I ain't gonna play brand wars, lets keep it on TOPIC and not go around slinging brand wars around.

[LAwLz]

Why not join the suit ? you clearly despise all that is AMD.

Ad hominem. Please stop using so many logical fallacies in your posts.

Charlie isn't a good source by the way, but even if what he said was true, it's still up to the investors to press charges or not.

[exyia]

I love this argument ignorant people bring, if you say anything bad about AMD, you hate them. In fact, I own AMD products I don't mind AMD at all. This is a straight up assessment of the situation. As for me joining the suit, how can I? I already said above that "Having been and also currently a shareholder in a few companies (neither of which are AMD or Nvidia)", that kind of negates me from joining don't you think? I mean, did you read what I typed or just went off because you must defend AMD because AMD is God in your eyes? My guy that manages my stuff, actually recommended NOT investing in AMD nor Nvidia (fyi and I did take his advice), but I add a caveat to that, that this was Feb. 2012 and NOT current. I actually have a more diverse profile that nets me a good return.

 

 

 

I honestly don't have time to explain the stock market, and how it works. Suffice to say, you don't know what you are talking about. Please, just stop, you'll embarrass yourself. Just an FYI, its not only a civil issue, the SEC can file criminal charges in these cases. With the allegation and proof according to the court documents and SEC filings (which is publicly available) that they also stated the same lies to the SEC, its going to get nasty, I bet. Been done before, be done again.

 

 

 

This is NOT insider trading, right now. Could it lead to that, maybe, but no one has facts about that. It depends on what the individuals within AMD did with their knowledge and stocks.

 

Edit: Your rant about Nvidia, seriously? I ain't gonna play brand wars, lets keep it on TOPIC and not go around slinging brand wars around.

 

"don't argue with an idiot - they will just drag you down to their level and beat you with experience"

 

I probably got it wrong, but yeah you get the idea

 

 

Why not join the suit ? you clearly despise all that is AMD.

I really don't see what AMD (or any individual at AMD) can gain by allegedly artificially preventing the stock prices from collapsing. Insider trading can happen through much simpler means.

Nvidia & Intel overestimate sales almost on a quarterly basis.

In 2008-9 Nvidia had lost so much money on making the Tesla (GTX 200 series) GPUs that they actually secretly halted manufacturing and when shortages began they blamed it on "unexpected demand" when in fact they created the shortages themselves because they weren't making any money on GT200 and even publicly lied about having EOL'd the products.

 

people like you remind me why I hate visiting this forum sometimes. afa did nothing but lay out the facts for a logical summary (it wasn't even an argument - just facts so you don't have to read for them)

[Eddyall]

I don't think AMD is gonna go bankrupt over this. Maybe lose a crap-ton of money but nothing they can't handle with sales.

 

But what would happen.

I had that problem with a philosophy teacher, my question is based on a premise.

[afa7336]

"don't argue with an idiot - they will just drag you down to their level and beat you with experience"

 

I probably got it wrong, but yeah you get the idea

 

lol, true, one of my known faults. My wife baps me in the head over it from time to time.

 

But what would happen.

I had that problem with a philosophy teacher, my question is based on a premise.

 

It all depends on a lot of factors, thats why its hard to really say. AMD could settle for X amount of dollars to try and quash an SEC investigation. AMD could win. AMD could lose the court battle and have a jury award X amount of money with no SEC investigation. There could be an SEC investigation, which has tons of outcomes including but not limited to jail time. Its really too early to tell. These things can go on for years and years. Motorola went through something similar and settled for a cool $200 Million in 2012 and the case was filed in 2007. Ironically, its the same firm that went after Motorola that's going after AMD.

 

A lot of people don't realize, when you get to this level Lawyers normally don't take on a case unless they feel they can win.

[TERAFLOP]

I love this argument ignorant people bring, if you say anything bad about AMD, you hate them. In fact, I own AMD products I don't mind AMD at all. This is a straight up assessment of the situation. As for me joining the suit, how can I? I already said above that "Having been and also currently a shareholder in a few companies (neither of which are AMD or Nvidia)", that kind of negates me from joining don't you think? I mean, did you read what I typed or just went off because you must defend AMD because AMD is God in your eyes? My guy that manages my stuff, actually recommended NOT investing in AMD nor Nvidia (fyi and I did take his advice), but I add a caveat to that, that this was Feb. 2012 and NOT current. I actually have a more diverse profile that nets me a good return.

 

I honestly don't have time to explain the stock market, and how it works. Suffice to say, you don't know what you are talking about. Please, just stop, you'll embarrass yourself. Just an FYI, its not only a civil issue, the SEC can file criminal charges in these cases. With the allegation and proof according to the court documents and SEC filings (which is publicly available) that they also stated the same lies to the SEC, its going to get nasty, I bet. Been done before, be done again.

 

This is NOT insider trading, right now. Could it lead to that, maybe, but no one has facts about that. It depends on what the individuals within AMD did with their knowledge and stocks.

 

Edit: Your rant about Nvidia, seriously? I ain't gonna play brand wars, lets keep it on TOPIC and not go around slinging brand wars around.

Calling other folks ignorant for disagreeing with you is only going to take you so far.

Ad hominem. Please stop using so many logical fallacies in your posts.

Charlie isn't a good source by the way, but even if what he said was true, it's still up to the investors to press charges or not.

Has nothing to do with Charlie, Read the Anandtech article which I've already linked unless you think they're not a good source either in which case I can't help you.

 

"don't argue with an idiot - they will just drag you down to their level and beat you with experience"

I probably got it wrong, but yeah you get the idea

people like you remind me why I hate visiting this forum sometimes. afa did nothing but lay out the facts for a logical summary (it wasn't even an argument - just facts so you don't have to read for them)

#2 lets examine the "facts" shall we.

 

afa is the same person that said there was no "proof" of Nvidia's OriginPC scandal and continued to defend their illegal anti-consumer programs and acts of coercion even after Linus himself confirmed it on the WAN show of that week.

http://linustechtips.com/main/topic/63451-nvidias-tier-0-program-is-behind-the-origin-pc-debacle/

https://linustechtips.com/main/topic/62886-origin-pc-was-paid-handsomely-to-remove-amd-gpu-options/

And now the same person is saying that the "evidence" is "damning" for AMD when in fact there is absolutely none.

All the "evidence" that has been put forward has been AMD's statements regarding estimated sales in the desktop sector of Llano APUs. The actual sales numbers failed to reach AMD's estimates. There could literally be a hundred different reasons why that happened it doesn't prove in anyway that AMD has been intentionally misleading their investors.

 

Well, it seems that they misled more then just that (Opinion not fact), though that will be settled in court. We've also got some statements made to the SEC, that could come back to haunt them. The SEC doesn't exactly play nice.

 

Its actually a lot worse then that (Opinion not fact). You see, they are alleging that AMD not only made false statements to its shareholders and the SEC by failing to disclose and correct information, but willfully manipulated its stock prices by artificially inflating the stock market and its stocks. This won't end AMD mind you, but this could be a LOT bigger then anyone here, except maybe one or two people realize.(Speculation) If this goes down big, it'll hurt AMD to the core though.(Speculation)

 

Having read the filing, it does look damning for AMD (Opinion), and also did a lot more research on it, the whole filing is all facts (false). Gotta remember, all this is public. Shareholder statements, SEC filings, financials, everything is totally open to the public. But I'll and we'll have to wait to see how it unfolds.

[Eddyall]

It all depends on a lot of factors, thats why its hard to really say. AMD could settle for X amount of dollars to try and quash an SEC investigation. AMD could win. AMD could lose the court battle and have a jury award X amount of money with no SEC investigation. There could be an SEC investigation, which has tons of outcomes including but not limited to jail time. Its really too early to tell. These things can go on for years and years. Motorola went through something similar and settled for a cool $200 Million in 2012 and the case was filed in 2007. Ironically, its the same firm that went after Motorola that's going after AMD.

 

 

Worst case scenario for AMD, they go bankrupt in a few years.

 

What would happen then?

Because nVidia gets the monopoly in a few domain and Intel would in a couple others too, unless ARM and IBM counts as competitor.

 

[TechFan@ic]

Oh dear.

[afa7336]

Calling other folks ignorant for disagreeing with you is only going to take you so far.

Has nothing to do with Charlie, Read the Anandtech article which I've already linked unless you think they're not a good source either in which case I can't help you.

 

 

afa is the same person that said there was no "proof" of Nvidia's OriginPC scandal and continued to defend their illegal anti-consumer programs and acts of coercion even after Linus himself confirmed it on the WAN show of that week.

http://linustechtips.com/main/topic/63451-nvidias-tier-0-program-is-behind-the-origin-pc-debacle/

https://linustechtips.com/main/topic/62886-origin-pc-was-paid-handsomely-to-remove-amd-gpu-options/

And now the same person is saying that the "evidence" is "damning" for AMD when in fact there is absolutely none.

All the "evidence" that has been put forward has been AMD's statements regarding estimated sales in the desktop sector of Llano APUs. The actual sales numbers failed to reach AMD's estimates. There could literally be a hundred different reasons why that happened it doesn't prove in anyway that AMD has been intentionally misleading their investors.

 

 

Wow, just wow. Okay, lets get one thing straight since you are digging around in my posting history to justify you running off at the mouth like a 5 year old kid. Unnamed sources ≠ proof. Why do people always seem to get this confused is beyond me. I am tired of this attitude on this forum that Linus is God and whatever he says is above reproach. Wanna believe every word he says fine by me, but he didn't provide any proof. Neither did Charlie, I'll add. Show me the proof you have besides unnamed sources? You can't and you know it. I'll use the example I used then, Linus doesn't review Creative Soundcards, none on his channel just Asus. Now I heard from my friend who works for Asus that they are paying Linus off to not touch Creative Soundcards. Would you call me out, or believe me? Of course you would call me out, so quit bitching that OMG I don't believe unnamed sources. This is old, and the fact that you have to bring it up now shows that you are in a position that you can't defend yourself. You're looking for dirt to sling, and its sickening.

 

Now onto what I said about the filing being fact? Okay, can you show me links to where the statements made to shareholders and to the SEC were falsely stated in the court filing? Those are facts filed, if you don't believe me, do your own research. You do know it is illegal for an Attorney to file false statements, and it is grounds for disbarment among other punishments including jail time (its jail time because its called perjury. You see whenever you make a statement to the court whether that be oral or written you have to swear it is true.)?

 

"It's a lot worse then that" again, fact. Lying to investors is bad, lying to the SEC is REALLY REALLY bad and a lot worse. Or do you consider possibly serving jail time along with fines in the millions not as bad? I mean, most people consider being sent to jail bad. I guess you like prison that much, huh, must have served some time then.

 

As for it being damning, you really don't know much about the stock market and how things work with investors nor stocks. Thats the hard part, you just don't understand and I don't have months to teach you all about it. You don't understand the position AMD is in either. Why don't you ask Motorola what it cost them, they settled and it was pretty much the same thing. Of course, you didn't research beyond digging up dirt on me like a little kid. How about I go through your posting history and find every little thing you said.

 

Evidence presented in the filing is public knowledge and easily researched, might want to do a little more digging before calling something false. Its ignorant of you to do that.

 

But alas, you won't do any research into it, because you believe AMD can do no wrong and Nvidia is bad, and all those little fanboy things.

 

And I'm sorry @TechFan@ic I just had to respond.

 

Edit: Why don't you bring up when I said I want Mantle to succeed but I'm holding off on making a judgement till I see results. Let me repeat that part, I HOPE MANTLE SUCCEEDS! OMG, thats not the picture you painted of me, doesn't fit your ideas so you left it out. Jeez, you'd think you'd tell the truth, and not shape facts to fit your opinion.

Edited January 17, 2014 by afa7336

[EmmaLong]

AMD should just go private. They should do what they do best which is design awesome processors and just leave all the shareholder headaches behind.
The Abu Dhabi government which bought AMD's fabs and spun them off as Globalfoundries should just buy AMD go 100% private.
AMD will have access to cutting edge fabs again and wouldn't have to answer to any share holders which means they can do what they think is right no matter what.
Poor Dirk Myer resigned after the Bulldozer debacle. He's a brilliant engineer Budllzoer was conceived under the corrupt Hector Ruiz not Dirk was really sad to see Dirk leave.