AMD faces fraud charge

[TwistedDictator]

AMD must face claims that it committed securities fraud by hiding problems with the bungled 2011 launch of Llano that eventually led to a $100 million writedown, a US court has decided.

According to Techeye  US District Judge Yvonne Gonzales Rogers said plaintiffs had a case that AMD officials misled them by stating in the spring of 2011 and will have to face a full trial.

The lawsuit was over the Llano chip, which AMD had claimed was "the most impressive processor in history."

AMD originally said that the product launch would happen in the fourth quarter of 2010, sales of the Llano were delayed because of problems at the company's chip manufacturing plant.

The then Chief Financial Officer Thomas Seifert told analysts on an April 2011 conference call that problems with chip production for the Llano were in the past, and that the company would have ample product for a launch in the second quarter.

Press officers for AMD continued to insist that there were no problems with supply, concealing the fact that it was only shipping Llanos to top-tier computer manufacturers because it did not have enough chips.

By the time AMD ramped up Llano shipments in late 2011, no one wanted them any more, leading to an inventory glut.
AMD disclosed in October 2012 that it was writing down $100 million of Llano inventory as not shiftable.

Shares fell nearly 74 percent from a peak of $8.35 in March 2012 to a low of $2.18 in October 2012 when the market learned the extent of the problems with the Llano launch.

 

 

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.

 

Source

[Raudi_]

inb4 reposterino.

[arnavvr]

Holy Shit, AMD Might not survive, I really hope Zen will kick Intel's a** and Skylake

[Sauron]

Ouch.

[WelshDdraig]

Repost? 

http://linustechtips.com/main/topic/339777-amd-will-face-a-securities-lawsuit/

[duriel]

happens all the time

 

not something amd can afford but it's nothing new or surprising

[Mattr567]

I have a LIano powdered laptop. I wonder if this will affect owners of LIano products.

[Totallycasual]

I hope AMD come out of this ok, not because i like them but because without them i don't think Nvidia would be as forthcoming with new GPU's lol its a sad truth but businesses need competition to keep them honest.