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[TPU] AMD Sued by Investors for Unfounded Llano Hype / SEC Fraud

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I'm only on page 13 of that report now, but I see no "smoking gun" in any of those quotes. I don't know what kind of company wouldn't make those statements, and many of the things he says are based off sales numbers. Most of the quotes are also very ambiguous ("demand is strong" - strong could mean anything?) and they don't seem to have any evidence that AMD expected Llano to flop completely.
 
sushiwarrior said:
I'm only on page 13 of that report now, but I see no "smoking gun" in any of those quotes. I don't know what kind of company wouldn't make those statements, and many of the things he says are based off sales numbers. Most of the quotes are also very ambiguous ("demand is strong" - strong could mean anything?) and they don't seem to have any evidence that AMD expected Llano to flop completely.
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Rory basically said that they were selling as many Llano as they could manufacture, while a few quarters down the road AMD was drowning in Llano inventory. Something happened there, either extreme incompetence or fraud.
 
Galatian said:
So - in a sense - they are actually good lawsuit trolls, by reminding firms to not hype their product and then underdeliver?
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Nah, this seems to be a pretty typical lawsuit when a stock craters like AMD's did. Law firms can always find stuff to sue on. It's just part of the deal when a company signs up to go public.
 
mrmt said:
Rory basically said that they were selling as many Llano as they could manufacture, while a few quarters down the road AMD was drowning in Llano inventory. Something happened there, either extreme incompetence or fraud.
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Llano was extremely supply constrained at first- I had to settle on an A6-3650 for my sister's PC, because the A8-3850 was completely out of stock in the entire UK. The issues with 32nm GloFo yield were confirmed by AMD : http://www.anandtech.com/show/4894/amd-confirms-32nm-yield-issues-at-global-foundries So they may have been completely yield limited at first and truly selling out, but once they got the yields up and produced as many Llano as they wanted to the demand had dried up and they got stuck with a lot of chips.

EDIT: Also consider this quote:

“We took a variety of steps in the fab and on the management team,” Noonen said at the Santa Clara event Wednesday (March 14). “The result was that Llano yields doubled in a quarter. We are in a very, very aggressive ramp of Llano,” he told more than a thousand attendees.
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http://semimd.com/lammers/2012/03/16/the-globalfoundries-yield-rebound/ (emphasis mine)
 
jpiniero said:
Nah, this seems to be a pretty typical lawsuit when a stock craters like AMD's did. Law firms can always find stuff to sue on. It's just part of the deal when a company signs up to go public.
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Its never the companys fault, right? Same with all the over promises and under deliveries.
 
NTMBK said:
Llano was extremely supply constrained at first- I had to settle on an A6-3650 for my sister's PC, because the A8-3850 was completely out of stock in the entire UK. The issues with 32nm GloFo yield were confirmed by AMD : http://www.anandtech.com/show/4894/amd-confirms-32nm-yield-issues-at-global-foundries So they may have been completely yield limited at first and truly selling out, but once they got the yields up and produced as many Llano as they wanted to the demand had dried up and they got stuck with a lot of chips.

EDIT: Also consider this quote:



http://semimd.com/lammers/2012/03/16/the-globalfoundries-yield-rebound/ (emphasis mine)
Click to expand...

Seems you could buy Llano. Just not the top speedbin as you wanted due to yield issues with binning.

History shows AMD ended up with a huge inventory of unsold chips.
 
ShintaiDK said:
Seems you could buy Llano. Just not the top speedbin as you wanted due to yield issues with binning.
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The A6-3650 was tricky enough to get hold of- it was out of stock at multiple online stores. It's not like we were awash with Llano at that point.

History shows AMD ended up with a huge inventory of unsold chips.
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At the end of the entire production run, yes. But the early GloFo yield issues are well documented, and it was during this supply-constrained period that the statements about Llano were made.
 
ShintaiDK said:
Its never the companys fault, right? Same with all the over promises and under deliveries.
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There's no legal issue with over promising, that's not the issue, the problem is making false or misleading statements based on information that AMD already knew. They're allowed to put a spin on sales numbers, but they aren't allowed to lie about sales numbers. It's to be determined what category AMD fell under.
 
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