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The Intel class action lawsuit alleges that during the Class Period, defendants misrepresented Intel’s business and financial condition by issuing false and misleading statements and/or failing to disclose adverse information regarding Intel’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 Intel’s overall product roadmap; (b) Intel’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, Intel 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 Intel’s stock reaching a high of $64.34 per share.
On June 11, 2020, Intel 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, Intel 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, Intel’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.
https://www.rgrdlaw.com/cases-intel-corporation-class-action-lawsuit.html
On June 11, 2020, Intel 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, Intel 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, Intel’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.
https://www.rgrdlaw.com/cases-intel-corporation-class-action-lawsuit.html