Class Action Lawsuit against AMD

[mrmt]

http://www.reuters.com/article/2015/04/01/us-usa-adv-micro-dev-lawsuit-idUSKBN0MS58E20150401

Reuters - U.S. chipmaker Advanced Micro Devices must face claims that it committed securities fraud by hiding problems with the 2011 launch of a new computer processor that eventually led to a $100 million writedown, a federal judge in Oakland, California, ruled.

In an order on Tuesday, U.S. District Judge Yvonne Gonzales Rogers said plaintiffs have supported their claims that Advanced Micro officials misled them by stating in the spring of 2011 that problems with the new processor were in the past.

(...)

Looks like AMD will have trouble because of their obtuse managers. The 2011 statements about Llano has come back to haunt them in the courts. I believe the plaintiffs have a very descent chance of winning the case, because AMD management either lied to them or was irresponsibly ignorant of the situation.

I wonder if Kumar statements in Q314 will become another lawsuit of the same kind, as Kumar stated that they were "on track" in terms of inventory level, and the company got another write down in the following quarter exactly because of inventory build up in their downstream chain.

 

[PhIlLy ChEeSe]

Law suits are par for the course though, I mean they must allot so much from the budget each year for this stuff? I work with slot machine's and they are always suing each other for copy write infringement n such.

 

[master_shake_]

i bought a llano cpu.

wonder what the pay out will be.

lol

 

[Burpo]

People lost a lot of money based on lies..
"Advanced Micro's 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, the lawsuit said.

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."

 

[Abwx]

People lost a lot of money based on lies..

They lost money because of their unability to understand the meanings of Siefert sayings, thoses investors have no clues of how the industry work and they may well be condemned for trying extorsion if AMD s lawyers are smart enough.

As to brand AMD as liar that s total fud since no court made a jugement on this issue, wait for an eventual trial before spreading what is actualy lies, your lies.

 

[Idontcare]

Gotta love the system though.

AMD's incompetent employees take home bonuses and salaries as compensation for their incompetence at the time...then they depart the company (after having laughed all the way to the bank) only to leave shareholders and new management as the bag holders of a hobbled and less-robust company than when they were employees.

And to add insult to injury, the existing shareholders (and existing employees) get to absorb the economic hit of a lawsuit regarding the incompetence of past employees.

The only way this system would have any sense of fairness to it is if the incompetent employees were financially liable for the economic havoc they wreaked on both the company and the shareholders alike.

A little bit of personal risk to go alongside all of that personal reward they raked in for a year or two while tanking the business.

 

[positivedoppler]

What is the relevance of this thread to CPU and Overclocking?

 

[Burpo]

They lost money because of their unability to understand the meanings of Siefert sayings, thoses investors have no clues of how the industry work and they may well be condemned for trying extorsion if AMD s lawyers are smart enough.

As to brand AMD as liar that s total fud since no court made a jugement on this issue, wait for an eventual trial before spreading what is actualy lies, your lies.

I didn't brand them liar.. a US Federal Judge did..

 

[Abwx]

I didn't brand them liar.. a US Federal Judge did..

The judge only said that the complaint can be filled, this has no juridical value to say if one is culprit or not, isnt it, so one more time you re lying, unless of course that you dont know how a judicial system work, in wich case why are you posting..?.

What is the relevance of this thread to CPU and Overclocking?

None, but i guess that the purpose is not to discuss technology..

 

[Burpo]

Can you read?
"Advanced Micro Devices must face claims that it committed securities fraud by hiding problems with the 2011 launch of a new computer processor that eventually led to a $100 million writedown, a federal judge in Oakland, California, ruled."
That Judge was presented evidence and RULED the law suit has merit.. They don't just grant whatever is filed.

 

[Abwx]

Can you read?
"Advanced Micro Devices must face claims that it committed securities fraud by hiding problems with the 2011 launch of a new computer processor that eventually led to a $100 million writedown, a federal judge in Oakland, California, ruled."
That Judge was presented evidence and RULED the law suit has merit.. They don't just grant whatever is filed.

He said that this can be filled but in no way he can give a qualitative opinion if one is culprit or not, this has to be decided by a court.

He ruled about the recevability, not about the judicial decision itself.

My last brush with a Federal Judge cost me $75k
I know full well how the Judicial system in these United States works.. Do you?

This kind of thing is possible only if there s overhelming evidences from the start, or if your lawyer was quite mediocre but it s impossible that you had to pay such an amount while being innocent.

 

[Burpo]

Wow.. you're really an expert on American law.. And a great judge of CPU's also..

Thanks for clearing that up for me. It is appreciated. Thanks for all you do here too.. You're awesome..

There.. you accused me of lies.. Just making sure I live up to your expectations..

 

[soccerballtux]

Gotta love the system though.

AMD's incompetent employees take home bonuses and salaries as compensation for their incompetence at the time...then they depart the company (after having laughed all the way to the bank) only to leave shareholders and new management as the bag holders of a hobbled and less-robust company than when they were employees.

And to add insult to injury, the existing shareholders (and existing employees) get to absorb the economic hit of a lawsuit regarding the incompetence of past employees.

The only way this system would have any sense of fairness to it is if the incompetent employees were financially liable for the economic havoc they wreaked on both the company and the shareholders alike.

A little bit of personal risk to go alongside all of that personal reward they raked in for a year or two while tanking the business.

the existing shareholders at the time should have been more hands-on and engaged in the management of the company. Too many hedge funds that simply expect companies and people to independently direct themselves wisely and honestly for the shareholder benefit. That's not how the world works, and is why they like to have laws to enforce on everybody for use in their lawsuits.

 

[Arachnotronic]

People lost a lot of money based on lies..
"Advanced Micro's 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, the lawsuit said.

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 sharp declines in the PC market had a lot more to do with AMD's drop than anything related to Llano did, IMO.

Intel stock, due mostly to a lousy PC environment, also had a rough year in 2012.

 

[Abwx]

Wow.. you're really an expert on American law.. And a great judge of CPU's also..

Thanks for clearing that up for me. It is appreciated. Thanks for all you do here too.. You're awesome..

There.. you accused me of lies.. Just making sure I live up to your expectations..

No, it s you that are overinterpreting :

"Advanced Micro Devices must face claims that it committed securities fraud

What should have been bolded is the word "claim", a claim is not a prove, otherwise we would be all millionaires...

On another note i benefited from a judicial formal training at the University, granted it was in France but the rules are the same in matter of proofs and burdens.

Where those cluless investor will be rebuked is that they are not ignorant that Seifert was talking of GF yields issues as being solved, what they dont know is that actual foundry production take 2 months for the waffers output, and this will be the delay for commercialisation of currently manufactured chips.

 

[TurtleCrusher]

Wow.. you're really an expert on American law..

Literally all that has happened is that a judge allowed it to be filed. Nothing more, nothing less. Unless you're saying otherwise you seem bent out of shape about it.

Have a drink and stop taking things so personal.

 

[erunion]

Literally all that has happened is that a judge allowed it to be filed. Nothing more, nothing less.

That's not an accurate assessment.

 

[Burpo]

So, just to recap.. according to Abwx.. I'm a liar, Arkansas Teacher Retirement System & KBC Asset Management (and other investors who bought the company's shares), are clueless extortionists who will be rebuked, and AMDs managers did nothing wrong.. Gotta love that French judicial training..

"In an order on Tuesday, U.S. District Judge Yvonne Gonzales Rogers said plaintiffs have supported their claims that Advanced Micro officials misled them"
It's never good when a Federal Judge demands answers..

 

[TurtleCrusher]

So, just to recap.. according to Abwx.. I'm a liar, Arkansas Teacher Retirement System & KBC Asset Management (and other investors who bought the company's shares), are clueless extortionists who will be rebuked, and AMDs managers did nothing wrong.. Gotta love that French judicial training..

"In an order on Tuesday, U.S. District Judge Yvonne Gonzales Rogers said plaintiffs have supported their claims that Advanced Micro officials misled them"
It's never good when a Federal Judge demands answers..

All that means is that the plaintiffs have brought forth non-tampered and potentially accurate information of a crime. Any decent lawyer can spin nonsense into reality.

This is why we have a judicial system here. This is a case of literally "he said this but meant another thing" but likely does not have solid concrete evidence that is the case. Who knows, maybe the CFO was misled by GloFlo on current supply forecasts? That itself would invalidate the case alone. If there's a reasonable possibility the CFO wasn't being misleading then this case is dead in it's tracks.

I'm skeptical that there was any actual wrongdoing. Didn't most PC part/OEMs around that time have a rough patch?

 

[TurtleCrusher]

That's not an accurate assessment.

Are we children? If you say I'm wrong, say why. If not you're just pointing fingers and walking away.

 

[NTMBK]

Hope you manage to get your money back, mrmt.

 

[ShintaiDK]

Gotta love the system though.

AMD's incompetent employees take home bonuses and salaries as compensation for their incompetence at the time...then they depart the company (after having laughed all the way to the bank) only to leave shareholders and new management as the bag holders of a hobbled and less-robust company than when they were employees.

And to add insult to injury, the existing shareholders (and existing employees) get to absorb the economic hit of a lawsuit regarding the incompetence of past employees.

The only way this system would have any sense of fairness to it is if the incompetent employees were financially liable for the economic havoc they wreaked on both the company and the shareholders alike.

A little bit of personal risk to go alongside all of that personal reward they raked in for a year or two while tanking the business.

This is why personal responsibility for leadership jobs is needed. And why bonuses are one of the most destructive things there ever is with its shortsighted behaviour. Its all about here and now and never about later. If it goes it goes, else they just dump it on someone else.

 

[exar333]

This is why personal responsibility for leadership jobs is needed. And why bonuses are one of the most destructive things there ever is with its shortsighted behaviour. Its all about here and now and never about later. If it goes it goes, else they just dump it on someone else.

I don't disagree with your now vs. later discussion, but that doesn't inherently make bonuses 'bad'. If you structure bonuses such that they reward this type of behavior, then yes, I totally agree. For many people, bonuses do represent something valuable, and important to work for. It comes down to how they are structured though, and if they reward the type of behavior that makes the company money over the long-term.

Some business just don't lend themselves well to this design, are are more short-term in nature. I don't think AMD is one of those though...

 

[ShintaiDK]

I don't disagree with your now vs. later discussion, but that doesn't inherently make bonuses 'bad'. If you structure bonuses such that they reward this type of behavior, then yes, I totally agree. For many people, bonuses do represent something valuable, and important to work for. It comes down to how they are structured though, and if they reward the type of behavior that makes the company money over the long-term.

Some business just don't lend themselves well to this design, are are more short-term in nature. I don't think AMD is one of those though...

Besides some christmas bonus or similar to everyone. The bonus concept is per design flawed due to the human factor. We can see it over and over again where people take risks, cutting corners, cheats and so on just to get that bonus here and now. And the bigger the bonus, the more willing they are to do things they shouldnt do. Plus why everything is so shortsighted today.

And why should you get a bonus in the first place for doing your job?

 

[frozentundra123456]

Literally all that has happened is that a judge allowed it to be filed. Nothing more, nothing less. Unless you're saying otherwise you seem bent out of shape about it.

Have a drink and stop taking things so personal.

That is a bit of oversimplification. The article specifically states that the judge ruled that the plaintiffs have "supported their claims that AMD officials misled them".