Judge greenlights class-action suit accusing AMD of securities fraud A US federal judge has given the green light for a class-action lawsuit accusing AMD of securities fraud over the chipmaker's alleged failure to inform investors of problems with its manufacturing. The suit, first filed in January 2014 and amended in June of that year, accuses AMD of willfully misleading investors by …
Once AMD loses that suit and is forced to pay damages, its stock will likely plummet again. Then investors start a new class action, accusing AMD of not informing investors of problems with its manufacturing, and as a result, losing a class-action lawsuit that resulted in its stock price plummeting.
Repeat ad infinitum, AMD has loads of cash that it can spend.
I also hope AMD wins this, but even though problems were well-known, GlobalFoundries was only established in March, 2009, up until when it was part of AMD. So it was their problem. Establishing GF did not solve the problems, it did not even have potential to solve the problems they were having.
I hope AMD wins too. The last thing we need is a weaker AMD. That means less money for R&D, which means they will be further behind Intel, which means Intel can jack up prices, which means we lose. It would also mean less money for the graphics R&D as well which would let NVidia get way ahead, which would mean NVidia will jack up prices, and again we lose. Everyone should hope AMD wins because competition helps lower prices and drive innovation.
This is just a group of opportunists looking to cash in on AMD's production issues. Anyone with a clue about the PC industry knows AMD has a history of production issues so to expect them to deliver a new APU design on their projected timeline which is clearly stated subject to change... and which has never in the past two decades actually happened, is either naïve or a huckster looking for jackpot justice.
Every single 10Q and other required AMD corporate financial statement has the required disclaimer about future stock value and performance. I personally have lost thousands on AMD stock due to their execution issues but I didn't try to bamboozle the judicial system into rewarding me for my faith in AMD to deliver products on time.
You know before you invest that there is a very high risk AMD will not deliver on time - especially with new tech. The investors took their chances and they were wrong. Now they want to be rewarded for betting on the wrong company. That's not how it works in the real world.
Mind, you, put AMD out of business and their Intel stocks will go through the roof, perhaps that's the plan.
IT in general has in the 35 years I've been working in it, managed to continuously over hype and under deliver at all levels, it would be more realistic to sue when the get it right against all expectations.
I think Intel simply tracked them, having a couple of releases held back in the ready if AMD market share ever showed signs of increasing.
What near fully killed AMD was in fact ARM, Intel being forced to track change track to mirror + ARM in the mobile market.
Intel really needed that minor competition from an 'AMD only' to continue.
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