Babak Hatamian, et al. v. Advanced Micro Devices, Inc., et al.
Case No. 4:14-cv-00226-YGR
You received a Notice because the Court has certified a Class in this lawsuit and you were identified as a potential Class Member whose rights may be affected by this lawsuit. The Notice explains that the Court has allowed, or “certified,” a class action lawsuit that may affect your rights.
The Court decided that this lawsuit can proceed as a class action because it meets the requirements of Federal Rule of Civil Procedure 23, which governs class actions in federal district courts. Specifically, the Court found that a significant number of investors purchased AMD common stock during the Class Period (see FAQ 7) and that the claims in the lawsuit are common enough to apply to all Class Members.
You may have legal rights and options to exercise before the Court decides who wins the case. Judge Yvonne Gonzalez Rogers of the United States District Court for the Northern District of California is overseeing this class action. The lawsuit is titled Babak Hatamian, et al. v. Advanced Micro Devices, Inc., et al., Case No. 4:14-cv-00226-YGR. More information about why the Court is allowing this lawsuit to be a class action is in the Court’s Order Granting Plaintiffs’ Motion for Class Certification, which is available here.Back To Top
In a class action, one or more people called "plaintiffs" sue on behalf of people who have similar claims. The Court must certify the action to proceed as a class action and appoint the “class representatives.” All of the individuals and entities on whose behalf the class representatives are suing are known as “class members.” Bringing a case as a class action allows the adjudication of many similar claims that might be economically too small to bring individually. One court resolves the issues in the case for all class members, except for those who choose to exclude themselves from the class.Back To Top
The initial complaint in this action was filed January 15, 2014. After Arkansas Teacher Retirement System and KBC Asset Management NV were appointed as Lead Plaintiffs by the Court, they filed their Corrected Amended Class Action Complaint (the “Complaint”) on June 11, 2014. Lead Plaintiffs allege that Defendants made materially false and misleading statements to investors about the manufacturing and subsequent launch of, as well as the demand for, its Llano microprocessor between April 4, 2011 and October 18, 2012, allegedly in violation of the Securities Exchange Act of 1934. Lead Plaintiffs further allege that the false and misleading statements inflated the price of AMD’s common stock and that, when Defendants later disclosed the truth of the ongoing problems with Llano, AMD’s stock price dropped. The Complaint, which contains all of the Lead Plaintiffs’ allegations, is available here.
Defendants moved to dismiss the Complaint on July 7, 2014. On March 31, 2015, the Court issued an order denying Defendants’ motion to dismiss.
On September 4, 2015, Lead Plaintiffs filed their motion for class certification. On March 16, 2016, the Court issued an order granting Lead Plaintiffs’ motion, certifying the Class, appointing Lead Plaintiffs as “Class Representatives,” and appointing Class Counsel. The Court’s Order Granting Plaintiffs’ Motion for Class Certification is available here.
The parties are currently engaged in discovery, and the deadline for completing discovery is March 3, 2017. The parties must file motions for summary judgment by April 7, 2017. No date for the trial has been scheduled.Back To Top
Defendants answered the Complaint on May 14, 2015. Defendants deny any wrongdoing in this lawsuit and believe that Class Representatives’ claims are without merit. Among other things, Defendants contend that the statements detailed in the Complaint were not materially false or misleading and that Defendants did not make the statements with the requisite intent to deceive investors. Defendants further argue that their statements largely concerned future predictions that never materialized and therefore their statements were not misleading when they were made to investors. Defendants further contend that the price of AMD’s stock was not impacted by the statements at issue and dispute the extent to which Class Members suffered recoverable losses. Defendants’ Answer to the Complaint, which contains all of their responses to the allegations and identifies their defenses, is available here.Back To Top
The Court has not decided whether Class Representatives or Defendants are correct and there has been no monetary recovery. By establishing the Class and issuing the Notice, the Court is not suggesting Class Representatives will win or lose this case. Class Representatives will attempt to prove their claims in proceedings that have not yet been scheduled.
If a settlement of the lawsuit is reached, it will be subject to approval by the Court. Class Members will be sent an additional notice of any proposed settlement and members of the Class who have not excluded themselves will have an opportunity to object to the proposed settlement and will be required to submit a Proof of Claim form to demonstrate their entitlement to any payment, if applicable. Similarly, the Court may also direct further notice to the Class following any judgment that may be entered in this case, or for any other reason that the Court may determine.Back To Top
No money or any other benefits are available now because the Court has not yet decided whether Defendants did anything wrong and the two sides have not settled the case. There is no guarantee that money or any other benefit ever will be obtained. If there is a recovery, you will be notified about how to ask for your share. PLEASE KEEP YOUR TRADING RECORDS CONCERNING AMD. You will need them if there is a future claims process.Back To Top
The Class, as certified by the Court, consists of:
All persons and entities that, during the period from April 4, 2011 through October 18, 2012, inclusive (the “Class Period”), purchased or otherwise acquired shares of the publicly traded common stock of AMD.
Excluded from the Class are AMD and the Individual Defendants; members of the immediate families of the Individual Defendants; AMD’s subsidiaries and affiliates; any person who was an officer or director of AMD or any of AMD’s subsidiaries or affiliates during the Class Period; any entity in which any Defendant has a controlling interest; AMD’s employee retirement and benefit plan(s); and the legal representatives, heirs, successors and assigns of any such excluded person or entity. Also excluded from the Class is any person or entity that timely and validly requests exclusion as explained in the Notice.
Defendants have reserved their rights to move to de-certify the Class, in whole or in part, or to seek the exclusion from the Class of certain entities or individuals at a later date.Back To Top
If you are still not sure whether you are included in the Class, you can get additional information by writing to the lawyers who were appointed Class Counsel in this case at the addresses set forth in FAQ 12.
If you are a Class Member, you have the right to decide whether to stay in the Class or ask to be excluded from the Class. If you are a member of the Class and wish to be excluded from the Class, you must request exclusion in accordance with the procedure set forth in FAQ 11.Back To Top
If you do nothing and are a Class Member, you will be legally bound by all of the orders the Court issues and judgments the Court makes in this class action, unless the Court issues an order de-certifying the Class or excluding you from the Class at a later date. You do not have to do anything now (other than retain your records in AMD common stock, as detailed below) if you want to keep the possibility of getting money or any other benefits from this lawsuit. By doing nothing you are staying in the Class. If you stay in the Class and Class Representatives obtain money or any other benefit, either as a result of a court ruling or a settlement, you will be notified about how to apply for your share. Keep in mind that if you do nothing now, regardless of whether Class Representatives win or lose the case, you will not be able to sue Defendants as part of any other lawsuit about the same legal claims that are the subject of this lawsuit.
If you choose to remain a member of the Class, you do not need to do anything at this time other than to retain documentation of your transactions in AMD common stock. Should there be a recovery in the future, members of the Class will be required to support their requests to participate in the distribution of any such recovery by demonstrating their membership in the Class and documenting their purchases and sales of AMD common stock and their resulting damages. For this reason, please be sure to keep all records of your transactions in these securities.Back To Top
You need to ask to be excluded from the Class if you want to pursue your own lawsuit or claims against Defendants about the conduct in this case, do not want to be bound by what the Court does in this case, or if you simply do not want to be part of the Class pursuing claims against Defendants. If you exclude yourself from the Class—which also means to remove yourself from the Class and is sometimes called “opting out” of the Class—you will not be legally bound by the Court’s judgments in this class action and will keep any right you may have to later sue Defendants for the claims being made in the case. If you exclude yourself you also will not get any money or any other benefits from this lawsuit, if there are any.
If you start your own lawsuit against Defendants after you exclude yourself, you will have to prove your own claims and obtain legal representation if desired. If you do exclude yourself so you can start or continue your own lawsuit against Defendants, you should talk to your own lawyer soon, because your claims may be limited by time and subject to a statute of limitations.Back To Top
If you wish to be excluded, you must send a written request stating that you request exclusion from the Class in the Advanced Micro Devices, Inc. Securities Litigation, No. 4:14-cv-00226-YGR, Your request for exclusion must:
Only request exclusion if you do not wish to participate in the class action and do not wish to share in any potential recovery that the Class may obtain. You must mail your exclusion request by first class mail, postmarked by no later than January 19, 2017 to:
Advanced Micro Devices, Inc. Securities Litigation
c/o Epiq Systems, Inc.
PO Box 4349
Portland, OR 97208-4349
You cannot exclude yourself from the Class by telephone or by email, and a request for exclusion will not be effective unless it contains all the information called for by this paragraph and is postmarked by the date stated above, or is otherwise accepted by the Court.Back To Top
As a member of the Class, you will be represented by the law firms of Labaton Sucharow LLC and Motley Rice LLC. Together, these law firms are called “Class Counsel.”
LABATON SUCHAROW LLP
New York, NY 10005
James M. Hughes
MOTLEY RICE LLC
28 Bridgeside Blvd.
Mt. Pleasant, SC 29464
Unless you elect to retain your own personal lawyer, by remaining in the Class you will not subject yourself to any direct obligations to pay the costs of the litigation. In the event there is a recovery by the Class, all costs and expenses, including Class Counsel’s attorneys’ fees, will be paid from that recovery in an amount that is approved by the Court. If there is no recovery, Class Counsel will not receive any attorneys’ fees.Back To Top
You do not need to hire your own lawyer because Class Counsel is working on your behalf. However, you have the right to retain your own personal counsel at your own expense. If you retain separate counsel, your counsel must enter an appearance on your behalf by filing a Notice of Appearance with the Court and mailing it to Class Counsel at the addresses set forth in FAQ 12 on or before January 19, 2017.Back To Top