Case4:14-Cv-00226-YGR Document61 Filed06/11/14 Page1 of 121

Case4:14-Cv-00226-YGR Document61 Filed06/11/14 Page1 of 121

Case4:14-cv-00226-YGR Document61 Filed06/11/14 Page1 of 121 1 LABATON SUCHAROW LLP Jonathan Gardner 2 Paul J. Scarlato Carol C. Villegas 3 140 Broadway New York, NY 10005 4 Telephone: (212) 907-0700 Facsimile: (212) 818-0477 5 MOTLEY RICE LLC 6 James M. Hughes David P. Abel 7 28 Bridgeside Blvd. Mt. Pleasant, SC 29464 8 Telephone: (843) 216-9000 Facsimile: (843) 216-9450 9 Co-Lead Counsel for the Class 10 [Additional counsel 11 listed on signature page] UNITED STATES DISTRICT COURT 12 NORTHERN DISTRICT OF CALIFORNIA 13 BABAK HATAMIAN, et al., ) CASE NO. 3:14-cv-00226-JD 14 ) Plaintiffs, ) 15 ) CORRECTED AMENDED CLASS v. ) ACTION COMPLAINT 16 ) FOR VIOLATIONS OF THE ADVANCED MICRO DEVICES, INC., et al., ) FEDERAL SECURITIES LAWS 17 ) Defendants. ) LEAVE TO FILE GRANTED ON JUNE 18 ) 10, 2014 ) 19 ) Jury Trial Demanded ) 20 ) ) 21 _____________________________________ ) 22 23 24 25 26 27 28 AMENDED CLASS ACTION COMPLAINT FOR VIOLATIONS OF THE FEDERAL SECURITIES LAWS CASE NO. 3:14-CV-00226-JD Case4:14-cv-00226-YGR Document61 Filed06/11/14 Page2 of 121 1 TABLE OF CONTENTS 2 I. NATURE OF THE ACTION ............................................................................................. 1 3 II. JURISDICTION AND VENUE ......................................................................................... 7 4 III. PARTIES ............................................................................................................................ 7 5 A. Lead Plaintiffs ......................................................................................................... 7 6 B. Defendants .............................................................................................................. 8 7 IV. SUBSTANTIVE ALLEGATIONS .................................................................................. 11 8 A. AMD Business Overview ..................................................................................... 11 9 B. AMD’s Microprocessors ....................................................................................... 12 10 C. AMD’s Relationship with GlobalFoundries ......................................................... 14 11 D. AMD’s Microprocessor Customers ...................................................................... 14 12 E. The Importance of the APU Fusion Project to AMD’s Success ........................... 15 13 14 F. Hardware and Software Manufacturers’ Broad Support for APUs ...................... 17 15 G. AMD’s Channel Engagement for APU Fusion .................................................... 18 16 H. Early APU Success – Brazos ................................................................................ 20 17 I. The Importance of Llano to AMD’s Gross Margin and Competitive Future ....... 21 18 J. Initial Delays in Llano Launch ............................................................................. 23 19 K. Llano’s Significant Yield Issues Persist Throughout 2011 and Are Known 20 By Defendants But Hidden From Investors .......................................................... 24 21 1. Former Employees From Both AMD and GlobalFoundries Substantiate Significant Llano Yield Problems and Defendants’ 22 Knowledge Thereof Throughout 2011...................................................... 27 23 2. Lead Plaintiffs’ Industry Expert Explains the Nature of the Llano Yield Problems and the Failure of Customers to Adopt Llano ................. 33 24 L. Defendants Admit the Yield Problem But Continue to Deceive the Market 25 About the Duration of the Problem ....................................................................... 40 26 M. AMD Admits that Llano Adoption in the Channel Is Weak Causing the Company to Write Down $100 Million in Llano .................................................. 42 27 28 AMENDED CLASS ACTION COMPLAINT FOR VIOLATIONS OF THE FEDERAL SECURITIES LAWS I CASE NO. 3:14-CV-00226-JD Case4:14-cv-00226-YGR Document61 Filed06/11/14 Page3 of 121 1 V. DEFENDANTS’ MATERIALLY FALSE AND MISLEADING CLASS PERIOD STATEMENTS AND ANALYST AND MARKET REACTIONS 2 THERETO ........................................................................................................................ 44 3 A. April 4, 2011 - AMD Conference Call to Discuss the Amendment of the 4 Wafer Supply Agreement (WSA) With GlobalFoundries .................................... 44 5 B. April 21, 2011 Form 8-K ...................................................................................... 46 6 C. April 21, 2011 – 1Q11 Earnings Conference Call ................................................ 47 7 D. May 17, 2011 – AMD at J.P. Morgan Technology, Media and Telecom Conference ............................................................................................................ 50 8 E. July 21, 2011 Form 8-K ........................................................................................ 52 9 F. July 21, 2011 – 2Q11 Earnings Conference Call .................................................. 53 10 11 G. 2011 2Q Form 10-Q .............................................................................................. 59 12 H. August 8, 2011 - Pacific Crest Securities Technology Leadership Forum ........... 60 13 I. August 25, 2011 – AMD Names Rory P. Read President and CEO Conference Call .................................................................................................... 62 14 J. September 13, 2011 – AMD at Deutsche Bank Technology Conference ............ 63 15 K. PARTIAL DISCLOSURE - September 28, 2011 News Release ......................... 64 16 17 L. October 27, 2011 Form 8-K .................................................................................. 66 18 M. October 27, 2011 – 3Q11 Earnings Conference Call ........................................... 67 19 N. November 9, 2011 3Q Form 10-Q ........................................................................ 73 20 O. December 7, 2011 – AMD at Barclays Capital Global Technology Conference ............................................................................................................ 74 21 P. January 24, 2012 Form 8-K .................................................................................. 75 22 Q. January 24 2012 – 4Q11 Earnings Conference Call ............................................. 76 23 24 R. 2011 Form 10-K .................................................................................................... 79 25 S. February 2, 2012 - AMD 2012 Financial Analyst Day ........................................ 81 26 T. March 1, 2012 - AMD at Morgan Stanley Technology, Media and Telecom Conference ............................................................................................. 82 27 U. April 19, 2012 Form 8-K ...................................................................................... 82 28 AMENDED CLASS ACTION COMPLAINT FOR VIOLATIONS OF THE FEDERAL SECURITIES LAWS II CASE NO. 3:14-CV-00226-JD Case4:14-cv-00226-YGR Document61 Filed06/11/14 Page4 of 121 1 V. April 19, 2012 - 1Q12 Earnings Conference Call ................................................. 83 2 W. May 8, 2012 - AMD at Bank of America Merrill Lynch Global Technology Conference ........................................................................................ 86 3 X. May 19, 2012 1Q Form 10-Q ............................................................................... 86 4 5 Y. PARTIAL DISCLOSURE – July 9, 2012 News Release ..................................... 88 6 Z. PARTIAL DISCLOSURE - July 19, 2012 Form 8-K .......................................... 88 7 AA. PARTIAL DISCLOSURE - July 19, 2012 – 2Q12 Earnings Conference Call ........................................................................................................................ 89 8 BB. PARTIAL DISCLOSURE – October 11, 2012 Press Release ............................. 95 9 CC. FINAL DISCLOSURE – October 18, 2012 8-K and 3Q12 Earnings 10 Conference Call .................................................................................................... 95 11 VI. ADDITIONAL ALLEGATIONS SUPPORTING THE INDIVIDUAL 12 DEFENDANTS’ SCIENTER ........................................................................................... 97 13 A. APU Strategy and Particularly Llano was Extremely Important to the Company’s Success .............................................................................................. 98 14 B. AMD’s Relationship with Related Party GlobalFoundries .................................. 98 15 C. Defendants Were “Hands On” Managers Intimately Involved with Both 16 the Yield Issues and Customer Supply Chain Issues ............................................ 99 17 D. AMD’s Focus on its Channel Customers............................................................ 100 18 E. AMD’s Focus on Emerging Markets .................................................................. 101 19 F. Defendants’ Own Class Period Admissions as to When They Knew About 20 Problems with the Yield and the Supply Chain .................................................. 101 21 VII. CLASS ACTION ALLEGATIONS ............................................................................... 101 22 VIII. LOSS CAUSATION ....................................................................................................... 103 23 IX. APPLICABILITY OF PRESUMPTION OF RELIANCE: FRAUD ON THE 24 MARKET DOCTRINE .................................................................................................. 104 25 X. NO SAFE HARBOR .....................................................................................................

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    121 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us