Intel facing class-action lawsuit over 7nm delay

midian182

Posts: 5,866   +48
Staff member
Why it matters: Intel's year isn't getting any better after revealing its 7nm process would be delayed by six months, knocking around 16 percent off its share price and wiping $43 billion off the company's market cap. Now, Chipzilla is facing a class-action lawsuit for investors fraud.

Intel's revenue was up 20 percent in its Q2 2020 earnings report, but its 7nm processors have been delayed by at least six months because production has fallen a year behind. The subsequent decline in share price resulted in AMD's stock jumping above its rival's for the first time in around 15 years.

On Friday, the Hagens Berman law firm put out a call to Intel investors who suffered significant losses to contact the company for a possible class-action suit. It also seeks people who may be able to assist in its investigation of possible securities fraud.

"Beginning at the Company's 2019 annual investor conference, Intel continuously represented that it would start shipping its first 7nm chips in 2021. The news was well-received since the Company claimed the 7nm chip would deliver double the area efficiency of its 10nm chips. Moreover, in the wake of severe delays derailing its 10nm chips, Intel assuaged concerns by stating, "We've made time-to-market the priority," and repeatedly affirmed the 7nm chip's timetable," states Hagens Berman.

But in its recent earnings call, Intel CEO Bob Swan said the company had identified a "defect mode" in its 7nm process that caused yield degradation issues. As a result, Intel has invested in "contingency plans," which Swan later defined as including using third-party foundries, all of which means its 7nm chips won't hit the market until 2021 or 2022.

The law firm is now investigating whether Intel misrepresented and concealed manufacturing and performance issues with its 7nm chips. It's also asking whistleblowers with non-public information on Intel to get in touch. "Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC," it states.

Like all billion (and trillion) dollar companies, Intel constantly faces a slew of lawsuits. In addition to alleged patent infringements, the company is dealing with several related to the Spectre/Meltdown vulnerabilities. Misleading investors is a serious allegation, just ask Nvidia, which has been battling against a similar lawsuit—which relates to misreporting mining GPU sales—since 2017.

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Shadowboxer

Posts: 759   +448
Unless there is proof that Intel purposefully held back information to manipulate share prices I don’t see this going very far. It’s pretty standard for large companies to receive butthurt lawsuits from shareholders when the prices drop.

However with Covid 19 I’m pretty certain a judge is going to give Intel the benefit of the doubt.
 

Adi6293

Posts: 493   +552
Nobody does but when you have so much money that you will never "run out" what difference does it make to a person like that? Plus buying stock in any company its a risk and reward game its not guaranteed that it will always go up. I didn't buy AMD's stock when it was $30 because I "chickened" out who do I sue for being a pus*****?
 
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Uncle Al

Posts: 7,213   +5,598
Even if they win the suite the damage to their reputation is going to haunt them beyond the current missteps .....
 

scavengerspc

Posts: 449   +308
TechSpot Elite
I didn't buy AMD's stock when it was $30 because I "chickened" out who do I sue for being a pus*****?
"Chickening out" does not make you a pus*****. It means you are cautious and is not a bad trait. But I can tell you that a lot of very successful people got that way after throwing caution to the wind to coin a phrase. Start small and read everything you can about short term investment. Join the forum at Etrade or any other online trading sites that have them. I'm telling you there are no internet boy bitches there and in fact are happy to help.

Cautious. Not reckless.
 
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MaxSmarties

Posts: 269   +136
7 nm is just a number. A number Intel can’t reach... what really means are performance, and Intel must do something in that regard.
 

mbrowne5061

Posts: 1,523   +846
This is 100% a fishing expedition. They don't even have any evidence yet, just some loses in stock value.

Nobody does but when you have so much money that you will never "run out" what difference does it make to a person like that?
and that is the difference between you and them. You don't stay rich by saying 'oh, I have more' anytime you lose money. You also don't get rich that way either.
 

Arbie

Posts: 70   +81
Guys - real graphs start at zero. Unless there's a very good reason to do otherwise. Here there isn't.
 

Rhythmattic

Posts: 10   +0
Rich people really don't like losing money, do they.
Nope... They take a risk,,,,,, That is what the stock market is,,,,It's not like intel didn't try, but for the same reasons these plebs are wanting to make a class action against the actual fallacy of what is the "Stock Market" they wine and *****.....

Fact is , many I imagine made a lot of money, and many their shares even with the drop are still in profit.....but the "Projected" money out of nowhere, is now on hiatus,,,,,damn, probably can't hang out at their holiday beach houses for a few months....

This is capitalism and the world of the oh so precious....... If only intel was a bank.... They'd be to big to fail.......

Pathetic.
 
So, did the Hagens Berman law firm already represent a fair number of Intel investors and therefore stepped up to protect the financial interests of their clients, or, did they pursue Intel investors with the idea of suing Intel - you know - because they just couldn't stand by and let this potential injustice go unanswered?

"On Friday, the Hagens Berman law firm put out a call to Intel investors who suffered significant losses to contact the company for a possible class-action suit. It also seeks people who may be able to assist in its investigation of possible securities fraud."

Sounds like the latter.