Pomerantz has filed a class action lawsuit that has been filed against Intel and some of its officers on behalf of defendants who purchased or otherwise, acquired Intel securities between April 23, 2020, and July 23, 2020.
The brief said that Intel, its 7-n, technology was the next generation following Intel's 10-nanometer technology. Intel claims that 7-nanometer technology offers double the area efficiency of 10-nanometer products, and will offer 20 percent higher performance per watt. In May 2019, Intel projected to ship its first 7-nanometer products in 2021.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects.
"Defendants failed to disclose to investors that Intel had identified a defect mode in its 7-nanometer process that resulted in yield degradation. As a result, the Company would experience a six-month delay in its production schedule for 7-nanometer products and Intel was reasonably likely to rely on third-party foundries for manufacturing its 7-nanometer products. Intel was reasonably likely to lose market share to its competitors who are already selling 7-nanometer products; and Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis", the complaint said.
On July 23, 2020, after the market closed, Intel disclosed production delays for its 7-nanometer products after the Company had "identified a defect mode in [its] seven-nanometer process that resulted in yield degradation. Intel's share price fell $9.81 per share, or approximately 16 percent, to close at $50.59 per share on July 24, 2020, on unusually heavy trading volume, the complaint said.