Hatamian v. Advanced Micro Devices, Inc.
Updated: March 16, 2016On March 16, 2016, the court granted class certification in the securities class action against semiconductor company Advanced Micro Devices, Inc. (AMD). Labaton Sucharow serves as co-lead counsel for lead plaintiffs, which allege AMD made false and misleading statements and concealed material facts regarding the commercial success of its Llano APU computer processor.
Status: Ongoing Case
Status: Ongoing Case
During the class period, AMD asserted the demand for the Llano APU was higher than anticipated, especially in emerging markets. Company managers also claimed they were not seeing any significant issues with the Llano APU or AMD's desktop computer market. However, AMD later revealed supply disruptions that resulted in large amount of unsold inventory, and it also recorded an inventory write-down of approximately $100 million. On this news, AMD's stock price dropped almost 74 percent from the class period high of $8.35 per share.
On March 31, 2015 the court denied defendants' motion to dismiss.
The case is Hatamian v. Advanced Micro Devices, Inc., No. 14-226 (NDCA). Labaton Sucharow represents lead plaintiff Arkansas Teacher Retirement System. Defendant is Advanced Micro Devices, Inc. (AMD).
AMD develops computer processors and related technologies for business and consumer markets. On July 9, 2012, the company pre-announced certain Q2 '12 results, including a decline in revenue of approximately 11 percent-sharply below its projections from the previous quarter. On this news, AMD's stock price fell $0.63, or 11.21 percent, to close at $4.99 per share the following day.
On July 19, 2012, AMD announced its final Q2 '12 results, including weak revenue that the company attributed to poor Llano APU sales. AMD revealed supply disruptions dating back to 2011 had caused a misalignment in availability of Llano APUs and motherboards, a necessary related product. Company managers sought to quell analyst concerns, declaring that the resulting large amount of inventory would not harm future margins. In reaction to these revelations, AMD's stock price declined $0.64 per share, or 13.17 percent, to close at $4.22 per share on July 20, 2012.
Finally, on October 18, 2012, AMD issued a press release announcing its results for Q3 '12, including gross margins that had declined by more than 30 percent from the prior quarter. Additionally, AMD disclosed that it had recorded an inventory write-down of approximately $100 million, primarily attributable to a decline in value of Llano APUs. In response, AMD's stock price declined $0.44 per share, or 16.79 percent, to close at $2.18 per share.