AMD has recently agreed to pay $12.5 million in settlement for a class-action lawsuit filed against the company. The case was raised by some customers who purchased AMD's FX-8000 or 9000 CPUs built on AMD's 2011 Bulldozer architecture. This ends the dispute that has been ongoing for several years now.
The case claimed that AMD falsely advertised the Bulldozer chips as eight-core processors when in reality they are only four-cores. The case settlement is great news for investors and gamers because the settlement amount could have gone much higher had it gone to court. Customers of the Bulldozer processor can now get a payout.
If you are interested in the amount of the payout, the lawyers will take their share, which is 30 percent of the total amount of the settlement or around $3.63 million. The court estimates that there are around 253,428 customers who will claim the settlement. Considering the number of claimants, the payout will be approximately $35 per customer.
AMD advertised that the Bulldozer CPUs has eight-core chips but every chip only has four dual-core modules with individual execution units. Several other resources such as cache and floating-point unit or FPU were shared over the module. According to AMD, those modules are considered as two cores each giving a total of eight cores.
However, customers alleged that considering the modules could not actually function on a separate process they should be counted as a single core which makes a total of four cores and not eight as claimed by the company. Like any settlement, the payout per person will be adjusted accordingly based on the number of people who will come forward and claim the settlement. To be eligible for the claim, one must have purchased one of the seven Bulldozer SKUs from AMD's website or in California.
AMD Settles Lawsuit For $12.5 Million, If You Bought Any Of These CPUs You Are Eligible For A $35 Payout https://t.co/rdObueZp42pic.twitter.com/3d9ELwOJSa — Wccftech (@wccftechdotcom) August 28, 2019
The CPU models in question include the AMD FX-8150, AMD FX-8120, AMD FX-8320, AMD FX-8350, AMD FX-9590, AMD FX-8370, and AMD FX-9370 chips. According to AnandTech, aside from the attorney's fee, the settlement amount will be deducted by settlement administration cost which is between $350,000 and $700,000. This leaves around $8.12 million to $ 7.77 million that eligible customers will have to split among themselves.
For now, this is the only information that we have about AMD settlement. Until the final settlement gets approval and the class members begin applying, it is hard to determine how much to expect.
