Lead Plaintiff Deadline: 09/28/2020
SUMMARY OF CASE:
A securities class action has been filed against Intel Corporation (INTC) on behalf of persons and entities that purchased or otherwise acquired Intel securities between April 23, 2020 through July 23, 2020. This case has been filed in the USDC – N.D.CA.
The Complaint alleges that Intel is a technology company that provides computing, networking, data storage, and communication solutions worldwide. It operates through Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, Client Computing Group, and All Other segments.
According to Intel, its 7-nanometer CPU technology is the next generation following Intel’s 10-nanometer technology. Intel claims that 7-nanometer technology offers double the area efficiency of 10-nanometer products, and will offer 20% higher performance per watt. In May 2019, Intel projected to ship its first 7-nanometer products in 2021.
On July 23, 2020, after the market closed, Intel disclosed production delays for its 7-nanometer products after the Company had “identified a defect mode in our seven-nanometer process that resulted in yield degradation.”
On this news, the Company’s share price fell $9.81, or approximately 16%, to close at $50.59 per share on July 24, 2020, on unusually heavy trading volume.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Intel had identified a defect mode in its 7-nanometer process that resulted in yield degradation; (2) that, as a result, the Company would experience a six-month delay in its production schedule for 7-nanometer products; (3) that Intel was reasonably likely to rely on third-party foundries for manufacturing its 7-nanometer products; (4) that, as a result of the foregoing, Intel was reasonably likely to lose market share to its competitors who are already selling 7-nanometer products; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.