Intel continues to receive disappointments, and it is that after announcing the delay of its 7nm manufacturing process, and its fall in the stock market, now it is the investors themselves who have taken action in the matter, since they believe that the company has not She has not been honest enough or committed to the progress and developments surrounding the 7nm manufacturing process, which is why they have sued the American chipmaker.
Investors are fed up with history repeating itself, and are now suing Intel for not disclosing the delay earlier, so they don’t give investors an honest picture of the current status of their 7nm chip.
Law firm Hagens Berman recently released a press release asking investors affected by Intel’s recent actions to join a class action lawsuit for investor fraud. The firm also encourages investors to help their colleagues contact the firm, in light of the investigation of a possible securities fraud. Additionally, those with nonpublic company information are using the SEC’s whistleblowing program. The stock price, which a month ago was $ 60, has now dropped below $ 50, specifically to $ 47.73. After this, investors have already lost patience.
“The investigation focuses on whether Intel misrepresented and concealed manufacturing and performance issues with its next-generation 7-nanometer chips,” the statement said.
“Starting with the company’s annual investor conference in 2019, Intel continuously represented that it would start shipping its first chips at 7nm in 2021. The news was well-received as the company claimed that the 7nm chip would offer twice as much area efficiency over its 10nm chips. Also, in the wake of severe delays that derailed its 10nm products, Intel allayed concerns by saying, “We have made time to market a priority,” and repeatedly stated the timing of your chips at 7nm. “
Analysts were shocked by the company’s revelations, including Stacy Rasgon of Sanford C. Bernstein, who reportedly called the news of the 7nm delay ” the worst thing we’ve seen in our career covering the company, ” and concluding with “What little credibility they had was left out of the sale .” As a result of this, Intel’s share price has dropped dramatically. The report with the figures also shows that there are more lawsuits that could be detrimental to the company in the coming months.
The firm, founded in 1993 and accredited as ” one of the largest collective action law firms in the US .” By Bloomberg, it is investigating whether Intel misrepresented the manufacturing and performance of its next generation of 7-nanometer chips.
The potential class-action lawsuit adds yet another task for Intel’s legal machine. Intel’s most recent Form 10-Q [PDF] lists several ongoing lawsuits that could impact the company, regarding vulnerabilities ” Specter / Meltdown ” that have been filed in federal and state courts in the US. (there are at least 32 lawsuits), and some of its current and former executives and directors. There appears to be another ongoing ” Chinese Academy of Sciences ” lawsuit for patent infringement, along with another patent infringement lawsuit from VLSI Technology. Intel also continues to argue the details of its anti-competitive business practices against AMD, where Intel should pay AMD € 1.06 billion. plus a surcharge for late payment, since the original complaint took place in 2010.