Judge Greenlights Class-Action Suit Accusing AMD of Securities Fraud

AMD will be facing a class-action suit accusing the chip manufacturer of misleading investors by withholding information on manufacturing problems. A US Federal judge has cleared the way for the lawsuit to proceed by denying AMD’s motion to dismiss. Thanks to forum member SnowBeast for the linkage.

The suit, first filed in January 2014 and amended in June of that year, accuses AMD of willfully misleading investors by withholding information about low manufacturing yields for its "Llano" line of processors.

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Stock's been getting punished anyway. Not sure how much that information really would have made a difference!

People still buy AMD stock? Their stock has been in the toilet for years. I think the smart money moved on years ago.

investing is like gambling, AMD did nothing wrong, they did not inherently withhold information from prime-shareholders about foreseen and unforeseen circumstances they were just running their business, judge should have thrown it out on the spot, I have yet to see AMD or whatever shout in the streets "buy our stock because yada yada" they offer it for sale, you buy it or don't simple as that.

Also people still buy AMD cause they make good products at good prices and without them what do you think would be the prices for various other chips for ALL market segments? stocks give them a slight influx of coin that can be used to research development etc.

i sold my amd stock back when it was almost $8. whew

dragonstongue said:

investing is like gambling, AMD did nothing wrong, they did not inherently withhold information from prime-shareholders about foreseen and unforeseen circumstances they were just running their business, judge should have thrown it out on the spot, I have yet to see AMD or whatever shout in the streets "buy our stock because yada yada" they offer it for sale, you buy it or don't simple as that.

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Tell it to the judge, honey.

AMD stock is going up to $20-$25, you heard it here first folks.



Disclaimer: No, just no.

What if AMD goes under? What are the odds of Samsung buying AMD. If AMD goes into liquidation, that leaves Nvidia and Intel with a monopoly. With a monopoly, would they stagnate since there is no competition or would they continue producing faster and more efficient CPUs and GPUs?

NeghVar said:

What if AMD goes under? What are the odds of Samsung buying AMD. If AMD goes into liquidation, that leaves Nvidia and Intel with a monopoly. With a monopoly, would they stagnate since there is no competition or would they continue producing faster and more efficient CPUs and GPUs?

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To be fair, I think Intel has stagnated plenty as is. AMD can't really hold a candle to them when it comes to just raw performance per core, and hasn't been able to for a good while now. AMD relies solely on price vs performance as a budget leader. Intel I think has had a pure performance and cutting edge technology monopoly in the market for a while now. For many generations now, Intel just made incremental improvements. It's kind of the same story in the GPU department. Nvidia has much more efficient chips. It just charges more for them, so AMD still has a place.

Just my opinion anyhow.

NeghVar said:

What if AMD goes under? What are the odds of Samsung buying AMD. If AMD goes into liquidation, that leaves Nvidia and Intel with a monopoly. With a monopoly, would they stagnate since there is no competition or would they continue producing faster and more efficient CPUs and GPUs?

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I love PC hardware as much as the next person, but IMO, when we look at the big picture, Samsung + AMD will actually meant stronger competition for nVidia and Intel, just not in the market segment that we as PC enthusiast cares about. Both Intel and nVidia are putting plenty of resources into low power SoC solutions for mobile computing and automotive industry. When we look at recent nVidia developer's conference, it was all about automotive SoC.

As a PC hardware enthusiast, I would want to see AMD around continue making hardware for PC. But if I were to put myself in AMD's shoe, and I'm supposed to keep the company competitive with a very small budget (ie. I can't invest everywhere like Intel does), I would probably pick a different market segment for the company.

I could be wrong, but I think that part of the x86 license deal with Intel states that Intel will revoke the x86 license if AMD is ever bought, so, their value is very low in that aspect.