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Intel sued for unexpectedly delaying the 7nm process node, a Law Firm has launched a ‘Securities Fraud’ investigation

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Last week the share price of Intel’s stock suffered a major setback when the chipmaker announced on Thursday that it had postponed the mass production of 7nm chips. Despite the sharp increase in profits, the price took a huge blow. They announced that their 7nm manufacturing process will suffer a 6 months delay due to a defect in the process. As a result, the first consumer products aren’t coming out before 2022, leaving Intel with 10nm process node as the only option for the time being.

The only 7nm part that remains on track at this point is ‘Ponte Vecchio’, Intel’s first Xe-HPC GPU that will be going into the Aurora supercomputer. This is expected to ship in late 2021 or early 2022.

It appears that Investors believe Intel has not been honest and committed enough about the progress and developments surrounding the 7nm node, which is why they have sued the US chipmaker. Investors are fed up with this move, and now they are suing Intel for not disclosing the delay sooner, thus not giving investors an honest picture regarding the current state of their 7nm process node.

The Hagens Berman law firm recently issued a press statement calling for investors impacted by Intel’s recent stock, to join a class-action lawsuit for investor’s fraud. The firm also encourages investors who may be able to assist them to contact the firm, in the light of investigation of possible securities fraud. Also, those who have non-public information from within the company are using the SEC Whistleblower program. The shares prices which were 60 USD a month ago, have now dropped below the 50 USD mark, at 48 USD. It seems investors have lost patience and faith in the company.

Analysts were shocked by the Company’s disclosures, including Stacy Rasgon of Sanford C. Bernstein, reportedly calling the news of the 7nm delay, “the worst we have seen in our career covering the company”, and concluding, “Whatever little credibility they had is out of the window.” As a result of this, Intel’s share price has sharply declined. The report with the figures also shows that there are more lawsuits that could be detrimental to the company in the coming months.

More importantly, Intel’s share price has fallen more than 20% since the 7nm delay news was announced. The law firm is calling on investors who owned the stake before July 23, to contact the company so that the amount can be included in the ‘class action lawsuit’.

The law firm which was founded in 1993 and credited as “one of the preeminent class action firms in the U.S.” by Bloomberg, is investigating whether Intel misrepresented the manufacturing and performance of its next generation 7-nanometer chips. Apart from this, there are multiple ongoing lawsuits against Intel, regarding the ‘Spectre/Meltdown’ vulnerabilities that have been lodged in U.S. federal and state courts, and some of its current and former executives and directors. There appears to be another ongoing lawsuit from the ‘Chinese Academy of Sciences’ for patent infringement, along with another patent infringement suit from VLSI Technology. Intel also continues to argue the details of its unfair business practices against AMD.

Intel Q2 2020 financial results

57 thoughts on “Intel sued for unexpectedly delaying the 7nm process node, a Law Firm has launched a ‘Securities Fraud’ investigation”

    2. CIG might catch a class action lawsuit too if they never finish the 2 games. I guess the attorneys would need to offer a lot of proof that Roberts took pledges and sold various things in game and never intended to finish the game. Another thing is that if CIG ran out of money then the awards might never be paid. Winning a lawsuit and collecting the award are 2 different things. They could seize his assets I think so there might be some money but it would be a drop in the bucket compared to the 306 million dollars they have raised over the years.

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  3. Good, it’s crazy how long Intel is taking to shift to 7nm and in generally bringing advancements like AMD. Only just gaming performance that’s keeping them afloat, and even that is a tough sell these days considering the not-so-large gap.

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    1. Bro, AMD’s “advancements” are actually TSMC’s advancements. Intel could just as easily have someone else control their production. If you think gaming is what is keeping Intel afloat, you’re a clueless tw*t. Nice knowledge of the industry.

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      1. at the end, the product is an AMD product.

        By your logic,
        An iPad isn’t an apple product, because most components are made by chinese/South Korea/ japan/India…?

        As if people really cared who crafted this or that.?

        You seem sad about Intel not being at the top…

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  5. How many more lawsuits does Intel already have in the list ? Because of all this, Lawyers actually earn a lot of money from clients.

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    2. I remember hiring a lawyer back in the early 80s and he took the case on contingency. I had quite a lot of medical bills as a lady made a left turn in front of me and my motorcycle hit her car and I went flying. Ended up with 2 broken legs and a lot of pain. The lawyer ended up settling my case for $25,000 of which he took 33% and every time he wrote a letter to the insurance company he charged $100 (around $275 when adjusted for inflation today.

      Can you imagine charging a client $275 just to write a letter which he probably just dictated to his secretary in a couple of minutes. She typed it up and he signed it.

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      1. Those lawyers are just like all those shareholders: leeches

        Funny, when intel spent over one decade selling the same 4core cups over and over, and every x months, they would release a new version, barely 4 or 5% faster, that would require a new motherboard, and anything above 4 cores would easily cost 700…1000…1200 bucks,
        Funny,
        I don’t remember seeing any of those Intel shareholders whining or complaining, when they were making billions and billions.

        But now that they might only earn 80 or 90% of what they were hoping to make, they forget the great time when they were becoming even more rich ! Fun those greedy vultures with big noses.

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  6. What a surprise after delay after delay after delay after delay after delay after delay after delay after delay. Amazed they didn’t get sued earlier really

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  7. ”Intel also continues to argue the details of its unfair business practices against AMD.”

    What does that mean actually ? though, I faintly recall Intel did some cheap business deals with some OEMs, by forcing them to buy Intel’s CPUs instead of AMD. Is that correct ?

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  8. so karma does exist, and intel are getting it hard for years of high prices and technological stagnation due to the monopoly they held over the cpu market.

    now if only it would also happen to nvidia.

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    2. Actually Nvidia has not done any dirty business unlike INTEL, if I’m not mistaken, so the chances are slim for a lawsuit against Nvidia.IMO

      Yeah we know Nvidia charges a premium for some of their high-end flagship GPUs, but this is just because of Monopoly, and AMD’s failure to release a faster GPU at the same price.

      The RTX 2080 Ti still remains the fastest single GPU which gamers can afford to buy. though, I hope something happens to Nvidia as well, so that they are forced to reduce their GPU prices.

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        1. That was not a dirty business. It was more like a marketing team’s blunder imo. failure of communication.

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          1. I mean the card did ship with 4GB of vram, just that it was never disclosed that the last 500MB of it was much slower than the rest.

            I wouldn’t really know what to call it, so yeah marketing team blunder I guess

          5. I sell you a car.
            One of the brakes is 50% smaller.
            You come back angry as F
            And i say…. marketing team’s blunder imo….

            No thats not marketing team’s blunder
            Nvidia F up they know rly well what are they dooing the 970 was to fast they had to do someting to it so the 980 would have a chance to sell.

            https://youtu.be/IghcowGhRBc

          2. And then let me ask you this: Have you ever use 970 yourself? Have you seen this significant performance drop yourself?

          3. Yes and Yes. And thank god now i have a amd GPU where i get 8GB vram when i buy a 8 gb card.

          4. So have you seen the so called significant performance hit once VRAM usage exceed 3.5GB in every game?

          10. He change the in game setting but i did not see VRAM usage change on his afterburner stat. While in game setting shows below 3.4gb and almost all 4gb being filled the memory usage shown under both settings are over 3.5GB. And the stutter he showed is something that you will see if the game try to use more than what the gpu can provide (on 970 case it should be over 4gb) . At least that’s how it will act on windows 7 based machine. I have 970 myself and still using it to this day. I have seen many game use over 3.5gb especially of the most recent one even on 1080p res. And i did never seen such performance dip. Not saying 970 was perfect though. As an owner of GTX660 (in SLI) in the past i have seen it first hand what happen if memory usage cross over 1.5GB mark in majority of games. With 970 i’m seeing similar issue but it was significantly reduced and only happen in a few games instead of majority of them. One of them was Assassin Creed Unity.

      2. I dunno. Driving up pricing every generation is a little shady in my eyes. Perhaps not illegal, but a bit of a jerk move. It’s not like they cannot afford to price their stuff reasonably.

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      3. Nvidia drivers after Pascal suck big time when come to frames consistency a lot of stutter and spike lags so thats what happens when there is 0% competition good FPS on paper real life experience its bad

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    3. Yep. Nvidia and Intel have been needlessly driving up pricing for years. It is why I wont’t buy from either of them. I cannot support that. Especially now that AMD is doing so well everywhere except the very high end GPUs (which I wouldn’t buy anyway).

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    4. Well, the Karma is moreso for them paying clients like Dell over a billion dollars to stop them from going to AMD. The stagnation and high prices were only a result of those actions.

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  9. Intel sucks these days.
    the fact of the matter is, they’re failing to execute on their roadmaps on all fronts.

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  12. Intel has been saying 10nm will be here soon for almost 5 years. Honestly, believing any timeline they state is like believing your friend who’s been to rehab 5 times that they’re really gonna get clean this time.

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  13. I don’t feel one bit sorry for Intel. They were so arrogant for years
    and years when they were way ahead of AMD. Now the tables have turned.

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    1. Ugh, disgusting.
      Thanks for the info, I’m trying to not buy from companies who openly support that kind of crap and its getting harder by the day.

      Reply

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