WASHINGTON, DC (January 10, 2018) — U.S. Market Advisors Law Group PLLC announces that a securities class action has been filed against Intel Corporation (NASDAQ:INTC). The class action is on behalf of investors who acquired Intel securities between July 27, 2017 and January 4, 2018.
Investors with losses have until March 12, 2018 to ask the Court to appoint you as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class. Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA Law Group to discuss this action.
Allegations Against Intel
Intel is engaged in designing and manufacturing products and technologies.
Throughout the Class Period Defendants allegedly made false and/or misleading statements and/or failed to disclose that: (i) there is a fundamental design flaw in Intel’s processor chips as they contain a feature that makes them vulnerable to hacking; and (ii) updates to fix the problems in Intel’s processor chips could cause them to operate as much as 30 percent more slowly. As a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
In early 2017, Google discovered Intel’s processor vulnerabilities. In June 2017, Google discretely informed Intel of the issues. On November 21, 2017, news outlets began reporting that a large number of Intel processors contain a serious design flaw that creates significant security vulnerabilities for any device that uses Intel processors. The security flaw is in Intel’s x86-64 hardware which was first introduced in 2004 and is still in use in the majority of today’s modern-day processors.
On January 2, 2018, The Register revealed that the “patch” to fix this security vulnerability would lead to substantial CPU performance degradation. The “patch” would require root level changes to the Operating System resulting in a substantial decrease in CPU performance as much as 30-50% by some estimates.
On January 3, 2018, Intel issued a press release in response to the myriad news media reports concerning the defect. The Company acknowledge the defect and the system degradation flaws caused by the patch. On the same day, Intel’s CEO told CNBC regarding the flaw, “We were notified by Google a while back ago, a couple months ago.” In addition, Reuters published an article titled, “Security flaws put virtually all phones, computers at risk,” that exposed the seriousness of the defect.
On this news, shares of Intel fell $1.59 per share, or over 3.5%, from its previous close price to close at $45.26 per share on January 3, 2018.
On January 4, 2018, news outlets reported that Intel’s CEO sold millions of dollars’ worth of shares after Intel was informed of vulnerabilities in its processors but before it was publicly disclosed. Krzanich sold about half his stock and now holds only the minimum number of shares he is required to own.
On this news, shares of Intel fell $0.83 per share from its previous close price to close at $44.43 per share on January 4, 2018.
About USMA Law Group
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
David P. Abel