Hatamian v. Advanced Micro Devices, Inc.
$29.5 million settlement reached
Labaton Sucharow serves as co-lead counsel for the class representatives, which allege semiconductor company Advanced Micro Devices, Inc. (AMD) made false and misleading statements and concealed material facts regarding the commercial success of its Llano APU computer processor.
The class consists of all persons and entities that, during the period from April 4, 2011 through October 18, 2012, inclusive (the class period), purchased or otherwise acquired shares of the publicly traded common stock of AMD. Some people connected with AMD are excluded from the class by definition. If you are a class member and do not want to remain in the class, you must seek exclusion by January 19, 2017. Please read the Notice of Pendency for details about your rights and options. The Notice can be found under "Case Materials" on this page.
During the class period, AMD allegedly 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 the defendants' motion to dismiss. On March 16, 2016, the court granted class certification. On October 25, 2017, the court preliminarily approved a $29.5 million settlement.
The case is Hatamian v. Advanced Micro Devices, Inc., No. 14-226 (N.D. Cal). Labaton Sucharow represents class representative Arkansas Teacher Retirement System. The 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.
Submit Proof of Claim
If you purchased or acquired the publicly traded common stock of AMD during the period from April 4, 2011 through October 18, 2012, inclusive, you may be entitled to receive money from the proposed settlement. To be eligible for a payment, you must submit a Claim Form by February 13, 2018 in accordance with the instructions set forth in the Notice.
A Settlement Hearing has been scheduled for February 27, 2018 at 2:00 p.m. before the Honorable Yvonne Gonzalez Rogers in Courtroom 1, 4th Floor of the Oakland Courthouse, 1301 Clay Street, Oakland, CA 94612. If you have questions about the settlement, please contact Labaton Sucharow at firstname.lastname@example.org or 1-888-219-6877, or contact the Claims Administrator, Epiq, at (844) 855-8569.