AMD Will Face a Securities Lawsuit

[Ertman]

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.

Not necessarily better. Killing off big chances of the company will effectively kill AMD in any market it currently competes in. Lets say they end up acquiring it. Its likely they would not figure out what to do with it, selling off some assets and keeping the patents and technology for their own products and still shutting the doors for the rest of the PC industry. We would be left in the same boat, but passed on the chance on the companies self-survival or a better acquisition. Has there been any hint of Samsung wanting to go toe-to-toe with intel and nVidia? Or any hint that they would have the necessary perseverance to compete in the markets that AMD does? When things get tough Samsung will likely fold the company and focus on more profitable ventures.

 

While AMD can be good for Samsung, aside from short-term cash, Samsung would not be good for AMD.

[Ertman]

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

They do. The problem is that is not how investing works anymore.

[spartaman64]

what investors are suing a company for over hyping a product and them loosing money for buying the company's stock. isnt that like every company

[Victorious Secret]

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

 

Welcome to LTT, where companies shit holy bricks and can't be judged or criticized...

If this was about Nvidia, people would be having nerd boners and being all happy. 

 

 

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

 

 

From the insurance that AMD has to mitigate issues like this, or their own very emergency use slush funds. 

Don't ever fuck with your investors as a company. They are smarter than you, can hire better lawyers and generally don't give a shit what excuses you have if those excuses don't result in more money being sent their way. 

[Misanthrope]

Not necessarily better. Killing off big chances of the company will effectively kill AMD in any market it currently competes in.

AMD is doing a good job on that all on their own, kinda the reason for this potential lawsuit.

[Ertman]

AMD is doing a good job on that all on their own, kinda the reason for this potential lawsuit.

AMD may be doing poorly, but turning abruptly towards a cliff to avoid running out of gas is not a better solution. This lawsuit is not necessarily related to AMD going out of business.

[Admire]

AMD historically always wins lawsuits

 

Big companies* always win lawsuits....Because they always settle instead of losing.

 

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.

Annnnnd what does Intels actions have to do with this?`Stop trying to deflect.

 

we have had endless threads about those issues when they happened.

 

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

 

When was the last time that happened?

 

Hell, when was the last time all products from anybody lived up to all the hype.

 

You can't rely on hail mary passes.

 

 

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

 

So if you boss sexually harassed you, or commits violence upon you, you should not sue, because where do you think you salary comes from...

 

Are you kidding me with this?

 

If this was fraud, they better sue.

 

 

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

Intel/nvidia will rape our gamer butts.

Ahh yes...that little start up company called samsung....

 

Why exactly would you expect them to be would be any better than Intel/Nvidia.....

 

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).

 

 

Welcome to LTT, where companies shit holy bricks and can't be judged or criticized...

If this was about Nvidia, people would be having nerd boners and being all happy. 

 

 

 

 

From the insurance that AMD has to mitigate issues like this, or their own very emergency use slush funds. 

Don't ever fuck with your investors as a company. They are smarter than you, can hire better lawyers and generally don't give a shit what excuses you have if those excuses don't result in more money being sent their way. 

 

That is certainty true.

[Misanthrope]

AMD may be doing poorly, but turning abruptly towards a cliff to avoid running out of gas is not a better solution. This lawsuit is not necessarily related to AMD going out of business.

 

The fact that they're not only running out of but leaking gas is something we can agree on. I disagree about diving into a cliff, it's uncertain yet not certain death as you put it, a big risk might be their only chance and being absorbed by someone else at least gives them some chances of turning things around, as opposed to well just running out of gas and dying.

[Comessy]

Samsung should buy AMD and Intel buys Nvidia

 

Then things would get interesting

[Trik'Stari]

I'm beginning to wonder why any company goes public like that. Why bother with stockholders who inevitably want more and more and more and more and more and more for less and less and less and less until you end up with a company like Comcat, TWC, Verizon, Monsanto, or any other evil faceless corporation.

[flibberdipper]

My grandma has a Llano APU in her computer...

[Mightyinvader]

I seriously Hope AMD will stay afloat, I do enjoy intel and NVIDIA products on friends computers but cannot afford them myself, AMD offers great performance for the cheapo price point. Of course as soon as I get enough for intel im sure my opinion will be different

[Ertman]

The fact that they're not only running out of but leaking gas is something we can agree on. I disagree about diving into a cliff, it's uncertain yet not certain death as you put it, a big risk might be their only chance and being absorbed by someone else at least gives them some chances of turning things around, as opposed to well just running out of gas and dying.

I understand your point. I just have a different viewpoint. Dying is dying. I think AMD has a better shot at continuing to compete in CPUs and GPUs without being purchased by Samsung. If it were a different company I would be far more agreeable.

[patrickjp93]

Samsung should buy AMD and Intel buys Nvidia

 

Then things would get interesting

AMD should have merged with Nvidia and Intel should have bought ATI. Then we'd have a real GPU war that would be five years farther along in architectural innovation (and Intel would admittedly be wiping the floor with Nvidia due to having vastly superior processes and resources at its disposal, though it lacks the patents to be able to get ahead).

[Comessy]

AMD should have merged with Nvidia and Intel should have bought ATI. Then we'd have a real GPU war that would be five years farther along in architectural innovation (and Intel would admittedly be wiping the floor with Nvidia due to having vastly superior processes and resources at its disposal, though it lacks the patents to be able to get ahead).

Like if Gpus used the 14nm manufacturing process

 

We would max out triple 4k monitors with ease!

[TwistedDictator]

Welcome to LTT, where companies shit holy bricks and can't be judged or criticized...

If this was about Nvidia, people would be having nerd boners and being all happy. 

 

 

 

 

From the insurance that AMD has to mitigate issues like this, or their own very emergency use slush funds. 

Don't ever fuck with your investors as a company. They are smarter than you, can hire better lawyers and generally don't give a shit what excuses you have if those excuses don't result in more money being sent their way. 

 

I dont like agreeing with VS but I guess things change at time.

 

Amd facing fraud chargers. God damn lol "The lawsuit was over the Llano chip, which AMD had claimed was "the most impressive processor in history."

In a way AMD do deserve it, just because when supply was needed they didnt give hurting Llano. But is this counted as fraud? I expected fraud to be more then "not supplying enough" compared to NV's 3.5gb false advertisement/claim/misleading/lying and claiming it was a fullly optimal 4gb VRAM like the 980.

[CTR640]

Another lawsuit and AMD will go bankrupt. "The most impressive processor in history" LMFAO!

[dragosudeki]

I dont like agreeing with VS but I guess things change at time.

 

Amd facing fraud chargers. God damn lol "The lawsuit was over the Llano chip, which AMD had claimed was "the most impressive processor in history."

In a way AMD do deserve it, just because when supply was needed they didnt give hurting Llano. But is this counted as fraud? I expected fraud to be more then "not supplying enough" compared to NV's 3.5gb false advertisement/claim/misleading/lying and claiming it was a fullly optimal 4gb VRAM like the 980.

Yeah I don't understand how this is a fraud? Seems like someone took an investment that went wrong and charging for their own losses. If this is seen as a valid trial, then its basically removing the risk of investment. In which case, invest in everything because you can press charges if you lose money!

[Klerk]

Yeah I don't understand how this is a fraud? Seems like someone took an investment that went wrong and charging for their own losses. If this is seen as a valid trial, then its basically removing the risk of investment. In which case, invest in everything because you can press charges if you lose money!

From what I get from the article is that AMD overstated/misrepresented the demand on the chips to its investors which lead the investors to believe that AMD will be having a significant amount of profit from this venture. But after this, the demand for the chips where much lower which caused a bunch of the inventory that were produced being worthless and had to be written down causing the value of AMD and its stocks to come down. From what I hear is that there are even records conference call of AMD execs with the investors regarding this. If this was true then there was a direct misrepresentation of AMD execs to the investors and the investors were acting based on information given to them by the AMD execs themselves which can constitute as fraudulent.

[RexinOridle]

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

 

Absolutely (probably) not considering the amount of crap comes with their line of phones and TVs (not saying they are not good).

[dragosudeki]

From what I get from the article is that AMD overstated/misrepresented the demand on the chips to its investors which lead the investors to believe that AMD will be having a significant amount of profit from this venture. But after this, the demand for the chips where much lower which caused a bunch of the inventory that were produced being worthless and had to be written down causing the value of AMD and its stocks to come down. From what I hear is that there are even records conference call of AMD execs with the investors regarding this. If this was true then there was a direct misrepresentation of AMD execs to the investors and the investors were acting based on information given to them by the AMD execs themselves which can constitute as fraudulent.

The supply could've gone right, which might be when AMD said about the supply. Could've been a discussion of plans, where then the execution went wrong. Would have to see a timeline of these events to actually find out whether AMD truly misrepresented information or if investors invested in a AMD's plan. Too bad that timeline is not in the article, since investing in a plan would deem this not fraudulent. There isn't much in the article that tell us this, which is why it is in trial for validity of the lawsuit.

[mr moose]

I dont like agreeing with VS but I guess things change at time.

 

Amd facing fraud chargers. God damn lol "The lawsuit was over the Llano chip, which AMD had claimed was "the most impressive processor in history."

In a way AMD do deserve it, just because when supply was needed they didnt give hurting Llano. But is this counted as fraud? I expected fraud to be more then "not supplying enough" compared to NV's 3.5gb false advertisement/claim/misleading/lying and claiming it was a fullly optimal 4gb VRAM like the 980.

 

 

Yeah I don't understand how this is a fraud? Seems like someone took an investment that went wrong and charging for their own losses. If this is seen as a valid trial, then its basically removing the risk of investment. In which case, invest in everything because you can press charges if you lose money!

 

A company must not misrepresent consumer demand or risk of loss when releasing financial statements that investors use to gauge how much they will invest, if at all .  This is not the first time a company has faced a class action for misrepresenting risk or consumer demand. JP morgan has faced 3, Blackberry has faced 1.   Misrepresentation occurs not so much when sales do not meet expectations, but when the expectations don't correlate with the data or the data has been manipulated in a way that changes sales projections.  It is pretty much like when advertises bend the statistics to make their product look better, except that how the data is presented to investors (shareholders) must be more detailed than that.  If that makes any sense.  

 

 

TL:DR  the investors are arguing  that sales didn't unexpectedly slump, AMD fiddled the projections to get higher investment.