COMPANY |
Intel Corporation |
COURT |
United States District Court for the Northern District of California |
CASE NUMBER |
20-cv-05194 |
JUDGE |
The Honorable Edward J. Davila |
CLASS PERIOD |
April 23, 2020 and July 23, 2020 |
SECURITY TYPE |
Common Stock |
Case Background:
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.
The complaint alleges that, 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.
Current Status of Case:
On March 31, 2023, the Court entered an order granting Defendants’ Motion to Dismiss. The Lead Plaintiff appealed that order to the Ninth Circuit Court of Appeals and that appeal is currently still pending. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; 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.