Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Intel Corporation (“Intel”) (NASDAQ: INTC) common stock between April 23, 2020 and July 23, 2020, inclusive (the “Class Period”).
The Class Period commences on April 23, 2020, when Intel announced its first quarter 2020 financial results. Then, on April 24, 2020, Intel filed its quarterly report on a Form 10-Q with the SEC for the period ended March 28, 2020, affirming the previously reported financial results. On July 23, 2020, after the market closed, Intel reported its second quarter 2020 financial results in a press release. Therein, Intel disclosed production delays for its 7-nanometer products. Specifically, the press release, stated, “[t]he company’s 7nm-based CPU product timing is shifting approximately six months relative to prior expectations. The primary driver is the yield of Intel’s 7nm process, which based on recent data, is now trending approximately twelve months behind the company’s internal target.”
The complaint alleges that, throughout the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that: (1) Intel had identified a defect mode in its 7-nanometer process that resulted in yield degradation; (2) as a result, Intel would experience a six-month delay in its production schedule for 7-nanometer products; (3) Intel was reasonably likely to rely on third-party foundries for manufacturing its 7-nanometer products; (4) 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) as a result of the foregoing, the Defendants’ positive statements about Intel’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On April 19, 2024, the Appellate Court affirmed the District Court’s decision granting the Motion to Dismiss and closed the case. This action has concluded.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.