AMD facing Llano lawsuit

April 2, 2015 // 12:49 p.m.

Tags: #amd #apu #california #fab #lawsuit #legal #llano #production #semiconductor #sue #suit

Chip-maker AMD is being brought to task over claims of securities fraud, relating to the launch of its Llano processor family in 2011.

AMD launched Llano back in 2011 with some bold claims, boasting of significant gains in instructions-per-cycle (IPC) and power draw compared to the company's previous Phenom II design. In its marketing, it described Llano as 'the most impressive processor in history' and downplayed the impact of manufacturing difficulties that saw the launch slip from Q4 2010 to mid-2011.

Despite the company's claims, Llano was little short of a disaster for AMD: its production problems continued well into the second half of 2011, preventing it from fulfilling orders - a fact, a lawsuit filed in California claims, it withheld from press and investors. By the time the company did have a handle on production, demand for the long-delayed part had passed and the company was forced to write off $100 million in Llano inventory in October 2012 as a result.

According to a report by newswire service Reuters, the suit against AMD has been confirmed as meritorious by District Judge Yvonne Gonzales Rogers, meaning that AMD will be called to answer before the court for its alleged wrongdoing. The suit calls for damages on behalf of investors who were hit by the 74-per-cent free-fall AMD's stock suffered between March 2012 and October 2012 as the full extent of the problems surrounding Llano became public.

AMD has not commented publicly on the judge's ruling, nor on the suit itself.
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