City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Intel Corporation

Court: U.S. District Court for the Northern District of California
Case Number: 3:20-cv-06493
Class Period: 10/25/2019 - 07/23/2020
Case Contacts: Avi Josefson, Hannah Ross, Jonathan D. Uslaner

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 July 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 is 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.

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.

Pursuant to the July 28, 2020 notice published in connection with the Huang action, under the Private Securities Litigation Reform Act of 1995, investors who purchased or otherwise acquired Intel securities during the Class Period may, no later than September 28, 2020, seek to be appointed as Lead Plaintiff for the Class.  Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.

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