|Court:||United States District Court for the Northern District of California|
|Class Period:||10/25/2019 - 10/23/2020|
|Case Leaders:||John Rizio-Hamilton, Jeroen van Kwawegen|
|Case Team:||James M. Fee, Lauren M. Cruz|
On September 16, 2020, Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) filed a class action lawsuit for violations of the federal securities laws against Intel Corporation (“Intel” or the “Company”) and certain of the Company’s current and former senior executives (collectively, “Defendants”), on behalf of investors in Intel common stock between October 25, 2019 and October 23, 2020, inclusive (the “Class Period”). The case was filed in the U.S. District Court for the Northern District of California.
BLB&G filed this action on behalf of its client, City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust, and the case was captioned City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Intel Corporation, No. 3:20-cv-06493 (N.D. Cal.). The complaint is based on an extensive investigation and a careful evaluation of the merits of this case. This case is related to a previously filed securities class action pending against Intel captioned Huang v. Intel Corporation, No. 5:20-cv-05194 (N.D. Cal.) To view the complaint, click on the Case Documents tab on the left-hand side of the page. On October 21, 2020, the Court consolidated the related actions, appointed SEB Investment Management AB and KBC Asset Management NV as Lead Plaintiff, and approved the selection of BLB&G as co-lead counsel.
Intel’s Alleged Fraud
Based in Santa Clara, California, Intel designs and manufactures microprocessors and other semiconductor components that are used in computers, data centers, communications infrastructure, and other devices. The claims alleged in this case arise from Defendants’ misrepresentations regarding Intel’s development and manufacturing of a new seven-nanometer chip.
The complaint alleges that, throughout the Class Period, Defendants made false and misleading statements regarding the status of Intel’s production of its new seven-nanometer technology, assuring investors that the Company was making “good progress” and that its first seven-nanometer product was “on track” to launch by late 2021. Intel also touted its “in-house manufacturing as an important advantage” over its competitors. As a result of Defendants’ misrepresentations, shares of Intel common stock traded at artificially inflated prices during the Class Period.
The truth began to emerge on June 11, 2020, when Intel announced that Jim Keller, whom the Company hired in 2018 to lead its chip engineering efforts, had abruptly resigned, effective immediately. The Company also revealed significant leadership changes within its Technology, Systems Architecture and Client Group—the group responsible for engineering and manufacturing Intel’s chips. Then, on July 23, 2020, after the market closed, Intel disclosed that production of its seven-nanometer chips was 12 months behind schedule. The Company attributed the delay to a “defect” in Intel’s seven-nanometer manufacturing process. Intel also revealed that, as a result of those production problems, it had established plans to outsource chip production to third-party manufacturers. As a result of these disclosures, the price of Intel common stock declined precipitously.
Plaintiffs filed their Amended Complaint on January 15, 2021, with Defendants' Motion to Dismiss due on March 16, 2021. Lead Plaintiff's Opposition to the Motion to Dismiss is due on April 27, 2021 and Defendants' Reply in further support of their Motion to Dismiss is due on May 25, 2021. The Court has tentatively scheduled oral argument on the Motion to Dismiss for June 10, 2021.
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