It appears that AMD will face securities fraud lawsuit according to a ruling by US Distric Court over Llano APU launch back in 2011.

A US District Court has ruled that AMD must face claims from investors over potential securities fraud committed by the company.

The lawsuit is focused on AMD's Llano APU launched back in 2011, as in Q3 2012, AMD had to take an inventory write-down of US $100 million on unsold Llano APU inventory in order to push the new Trinity APUs to the market which, although did not directly cost the company US $100 million, resulted in a drop of the value of the company and reduced the value of stock, thus hurting shareholders.

The lawsuit suggest that AMD committed securities fraud as the Llano production was not as strong as AMD was claiming back then which artificially inflated the value of the company in 2011 and 2012, and which was a result why AMD ended up with too many Llano chips and had to do that inventory write-down.

These lawsuits are not that uncommon and a US District Court only ruled that the lawsuit can go to trial and the end of it is probably not even close as we will most likely read about it in a distant future.



Source: Reuters.com.