SAN FRANCISCO (Legal Newsline) – The securities class action firm Bernstein Litowitz has set its sights on Intel, filing a lawsuit on Sept. 16 on behalf of a Hallandale Beach, Fla., public pension fund.
The lawsuit says Intel misled investors as to when its seven-nanometer chips would be ready. The suit says executives said Intel was making “good progress.”
“In reality, Defendants knew, or recklessly disregarded, that as a result of a material defect in Intel’s manufacturing process, the Company could not launch its next generation seven-nanometer chip on schedule,” the suit says.
“As a result of the Company’s defective manufacturing process, Defendants also knew or recklessly disregarded that Intel’s strategy of designing and manufacturing its products in-house did not provide the competitive advantage touted to investors.”
Intel’s stock fell upon resignation of a chip designer from $60.40 to $50.59, the suit says.