Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Intel Corporation
SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-intel-corporation-class-action-lawsuit.html) today announced that it filed a class action seeking to represent purchasers of Intel Corporation (NASDAQ:INTC) publicly traded securities during the period between April 23, 2020 and July 23, 2020 (the “Class Period”). This action was filed in the Northern District of California and is captioned Matheson v. Intel Corporation, No. 20-cv-05780.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Intel publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Intel class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Intel class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Intel class action lawsuit. An investor’s ability to share in any potential future recovery of the Intel class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Intel class action lawsuit, you must move the Court no later than 60 days from July 28, 2020. If you wish to discuss the Intel class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian E. Cochran of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at bcochran@rgrdlaw.com. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-intel-corporation-class-action-lawsuit.html.
The Intel class action lawsuit charges Intel and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Intel designs and manufactures hardware and software for computing, networking, data storage, and communications solutions.
The complaint alleges that during the Class Period, defendants misrepresented the Company’s business and financial condition by issuing false and misleading statements and/or failing to disclose adverse information regarding the Company’s financial performance and, in particular, the current performance and production status of its 10-nanometer (“10nm”) and new generation 7-nanometer (“7nm”) products. Specifically, defendants failed to disclose that: (a) Intel’s 7nm processor scheduled for release in 2021 was not on track, but rather, was suffering from material production and yield defects that threatened the 2021 delivery and timing of the product and the Company’s overall product roadmap; (b) the Company’s gross margins and fiscal 2020 outlook had been adversely impacted and would continue to be adversely impacted by continued acceleration of 10nm production and simultaneous 7nm technology development problems; and (c) because of the ongoing process and production defects of the 7nm products, the Company was considering material changes to its manufacturing protocols to include third-party foundries – a process that Intel had long resisted. As a result this information being withheld from the market, Intel securities traded at artificially inflated prices during the Class Period, with the price of the Company’s stock reaching a high of $64.34 per share.
On June 11, 2020, the Company announced the resignation of Senior Vice President Jim Keller (who had been hired in 2018 to take over and lead Intel’s stumbling process and chip development group). On this news, the price of Intel stock declined nearly 7%. Then on July 23, 2020, after the market closed, Intel announced its second quarter 2020 financial results. Despite impressive revenue and earnings results, the Company disclosed that it was further accelerating its transition to 10nm products and, more importantly, that production and development of its 7nm products was 12 months behind schedule. As a result of these disclosures, the Company’s share price declined approximately 16%, from a close of $60.40 per share on July 23, 2020 to a close of $50.59 per share on July 24, 2020.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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Contacts
Robbins Geller Rudman & Dowd LLP
Brian E. Cochran, 800-449-4900
bcochran@rgrdlaw.com