Some investors who purchased AMD’s stocks between October 27th, 2011 and October 18th, 2012 filed a class action case against AMD, claiming that AMD and its employees have violated US Securities Exchange Act, 1934.
According to the class action lawsuit, it is alleged that AMD misled its investors about how popular its 1st gen APU ‘Llano’ would get, claiming that it would sell a lot more than it actually did. But when Q2 2012 results came out, it was clear that AMD wasn’t able to meet its claims made to its investors. The plaintiffs now seek to recover damages.
The lawsuit was filed via Robbins Geller Rudman & Dowd and the Class-action lawsuit details can be accessed from here.
The lawsuit mentions the following:
The complaint alleges that during the Class Period, defendants made false and misleading statements about the Company’s business and prospects. Specifically, the complaint alleges defendants made false statements and/or concealed adverse facts regarding AMD’s 32 nanometer Llano (the “Llano”) Accelerated Processing Unit (“APU”), which is a type of microprocessor that combines AMD’s central processing unit and its graphics processing unit onto a single piece of silicon, including repeatedly highlighting the “strong” and “significant” interest in, demand for, and unit shipments of, the Llano APUs, and falsely and misleadingly representing that AMD’s desktop business was in a “strong position” and that it would “continue to rebound” in 2012. As a result of defendants’ false statements, AMD stock traded at artificially inflated prices throughout the Class Period.