Labaton Sucharow Recovers Nearly $30 Million in Class Action Against Advanced Micro Devices
NEW YORK (August 25, 2017) — Labaton Sucharow LLP has reached a $29.5 million settlement, subject to court approval, in a case alleging semiconductor company, Advanced Micro Devices, Inc. (AMD or the company), made false and misleading statements and concealed material facts regarding the commercial success of its Llano APU computer processor.
The case alleges that at the start of the class period in April 2011, the defendants told the market that the yield problems that had affected the Llano chip in 2010 were behind the company, and that Llano was shipping to customers in sufficient volume for a successful June 2011 launch. However, the plaintiffs claim that starting in at least early 2011, the company was having substantial yield issues with Llano and could not provide Llano to a significant part of its customer base—the distribution channel. The plaintiffs allege that at the end of September 2011, it was revealed that the company was having yield issues with Llano. However, the plaintiffs contend that the problems with the yield in 2011 caused weakened demand for the chip in 2012, and throughout 2012, the plaintiffs allege the defendants continued to tout the supposedly strong and pent up demand for Llano, particularly in its channel. The plaintiffs claim that the truth about the channel sales begins to come out in July 2012, and in October 2012, the company took a write down of $100 million in Llano inventory. AMD's stock price dropped from a class period high of $9.10 to $2.62 at the end of the class period. The defendants have denied all allegations.
The Labaton Sucharow team prosecuting the case served as co-class counsel and was led by partners Jonathan Gardner and Carol C. Villegas, with assistance from Alec T. Coquin. The case is Hatamian v. Advanced Micro Devices, Inc., No. 14-cv-00226 (N.D. Cal.). Labaton Sucharow represents class representative Arkansas Teacher Retirement System.