SAN DIEGO & SANTA CLARA, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Intel Corporation (NASDAQ: INTC) filed a class action complaint against the Company for alleged violations of the Securities and Exchange Act of 1934 between April 23, 2020 and July 23, 2020. Intel Corporation designs and manufactures hardware and software for computing, networking, data storage, and communications solutions.
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Intel Corporation (INTC) Shocks Investors by Revealing a Yearlong Production Delay for New Product Line
According to the complaint, Intel and certain of its officers failed to communicate important delays in the expected release date of its new product line. Embarrassing setbacks in the production and manufacturing of Intel's current 10nm line, released in 2019, damaged the Company's industry reputation and caused loss of market share to its competitors. To regain market position, Intel planned to continue producing and shipping its 10nm line while simultaneously developing its 7nm processors for release in 2021. On January 24, 2020, the Company filed a Form 10-K stating that Intel "was on track to deliver [its] first 7nm-based product…at the end of 2021." Again, on April 23, 2020, certain Intel officers announced to investors that the Company was on track for the late 2021 launch of the 7nm line and that it had increased 10nm product production to meet unexpected demand. Intel shocked investors by releasing a statement on July 23, 2020, stating that it was further accelerating its transition to 10nm products and that the development of its 7nm chips was 12 months behind schedule. At least one analyst speculated that acceleration of the 10nm product was not due to demand, but the result of the 7nm delay. On this news, the share price declined 16%, dropping from $60.40 to close at $50.59 on July 24, 2020.
If you purchased Intel Corporation (INTC) securities between April 23, 2020 and July 23, 2020, you have until September 28, 2020, to ask the court to be appointed lead plaintiff for the class.
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