AMD Management Faces New Investigation into Llano Microarchitecture Statements
Schubert Jonckheer & Kolbe LLP today launched an investigation into potential derivative claims on behalf of shareholders of Advanced Micro Devices, Inc. (NASDAQ: AMD), related to the company’s statements regarding its Llano microarchitecture and manufacturing yield problems.
The investigation concerns whether the company’s officers and directors breached their fiduciary duties by making misleading statements about AMD’s Llano microarchitecture between April 4, 2011 and October 18, 2012. The Llano microarchitecture is an accelerated processing unit (“APU”), which contains a series of 64-bit microprocessors designed to act as a central processing unit (“CPU”) and graphics accelerator (“GPU”) on a single chip. AMD management touted the Llano as an unprecedented APU that would produce high gross margins.
Due to problems with the Llano production process, however, the new microarchitecture missed its slated launch date in 2012, and AMD wrote down $100 million of Llano inventory as unsalable. The company may have also overestimated demand for the Llano APU, making allegedly misleading statements that there was “higher than anticipated” interest in the chips. During this period, AMD’s stock price dropped $6.17—nearly 74% of its value.
AMD’s officers and directors made statements about the Llano that may have exposed the company to significant civil liability. The company currently faces a class action lawsuit alleging that the company knew about the Llano yield problems and concealed these facts from the public. On March 31, 2015, U.S. District Judge Yvonne Gonzalez Rogers denied AMD’s motion to dismiss the class action, which may expose the company to millions of dollars in damages, as well as investigatory and litigation costs.
If you currently own Advanced Micro Devices, Inc. stock and wish to obtain additional information about the investigation and your legal rights, please fill out our form (at right) or contact Dustin Schubert either via email at dschubert@schubertlawfirm.com or by phone at 415-788-4220.
