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AMD Faces Lawsuit from Disgrunted Share Holders

AMD’s first APU, the Llano, didn’t have the best launch with production trouble, lack of sales, and the end-effect that AMD was forced to an inventory write-down of $100 million. The write-down resulted in the company’s value dropping by as much over night and that left stockholders disgruntled.

They’ve launched a lawsuit against AMD and the US District Court ruled that the company must face the claims from investors over potential securities fraud. The suit claims that AMD misrepresented production of Llano chips to its investors despite supply issues from its foundry partner GlobalFoundries, and artificially inflating the value of the company in 2011-12.

Looking aside from possible undisclosed facts, isn’t that just the normal aspects of investments? You give you money in the hope of more to return, but also knowing that you risk losing everything.

The lawsuit seeks damages on behalf of the Arkansas Teacher Retirement System, Belgium-based KBC Group’s KBC Asset Management and other investors who bought the company’s shares between April 2011 and October 2012. The case name is Babak Hatamian et al Advanced Micro Devices Inc et al, U.S. District Court, Northern District of California, No 14-226.

Thanks to Reuters for providing us with this information

Bohs Hansen

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