Intel faces more class action suits over share price hits caused by Spectre and Meltdown f...

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in Current Mac Hardware
Intel's legal woes surrounding the Meltdown and Spectre vulnerabilities in its processors are increasing, with more legal firms filing class action suits against the chip company, this time on the behalf of its shareholders over the revelation of the flaws and the effect on the value of the company's shares.




Four law firms have made announcements of class action lawsuits for shareholders in the last two days, starting with the Rosen Law Firm and Pomerantz on Wednesday. Separate announcements were made by Kessler Topaz Meltzer and Check as well as Block & Leviton on Thursday.

The complaints have a similar set of issues with Intel's management of the Meltdown and Spectre fiasco, alleging that Intel made false or misleading statement, or filed to disclose, a fundamental design flaw in its processors that make them vulnerable to hacking. The false and misleading statements accusation also includes the updates required to fix the vulnerabilities, which can potentially make the processors run significantly more slowly.

The law firms reason that Intel's public statements were materially false and misleading at all relevant times, and when the details of the vulnerabilities surfaced, the lawsuit claims Intel's investors suffered damages.

According to Pomerantz, the initial design flaw reporting on January 2, along with Intel's confirmation the following day, caused Intel's share price to drop $1.59 per share on January 3, or over 3.5 percent, from its previous closing price.

On January 4, the reports that Intel CEO Brian Krzanich allegedly sold shares worth millions of dollars after Intel was informed of the vulnerabilities, but crucially before they were publicly disclosed, are said to have damaged the stock price further. It is insinuated these reports helped press the share price down another $0.83 to $44.43 at closing on January 4.

All four law firms intend the class action suits to be on behalf of purchasers of the Company's securities between July 27, 2017, and January 4, 2018. All are also said to be seeking a shareholder to be identified as a Lead Plaintiff for the class, with a deadline to request to the court for the appointment of the position by March 12.

The new suits are the latest in a long line of legal issues Intel faces following the revelation of the vulnerabilities. Other class actions filed this week have been consumer-oriented, claiming customers had been overcharged or saw a loss of the purchase price for the processor, and that consumers face either buying a new computer or processor without the flaw, or continue using a computer with massive security vulnerabilities or one with significant performance degradation.

Comments

  • Reply 1 of 11
    this was COMING! thats for sure... it was a matter of WHEN. Interesting I switched my work computer from a Haswell CPU to the new AMD 1700 overclocked. This sort of makes me feel better. 
  • Reply 2 of 11
    maestro64maestro64 Posts: 4,166member

    Actually they should be sueing the guy who let the information leak out before a fix was available and put in place. That guy screwed Intel stock since if a fix was already available the stock would not hardly moved. It was the fact the new was leaked and a fix was not readily available that tanked the stock. I would check the leaker investments to see if he shorted Intel.


    Let see they want class action for people who bought between July and January and the stock went from 34 to 44 during that time and the CEO sold in August and another who stuck around made more than the CEO, yeah lots of harm there. I think the lawyer will have a hard time showing their clients loss money. The lawyers will make lots of money and the investor will get a free "Intel inside" stick for their computers.

    edited January 11 randominternetperson
  • Reply 3 of 11
    volcanvolcan Posts: 1,637member
    this was COMING! thats for sure... it was a matter of WHEN. Interesting I switched my work computer from a Haswell CPU to the new AMD 1700 overclocked. This sort of makes me feel better. 
    Sort of depends on how Microsoft patches the bugs. They could write an exception for AMD or they may just code a single patch for all currently supported Windows versions, (same with Linux). If there is just one universal patch for the entire platform it will probably affect performance regardless of what CPU you are using. Interestingly though, Microsoft is warning the patch will degrade performance but somehow Apple appears to have patched, at least Meltdown, with no noticeable degradation. We'll see about Spectre. I'm not a beta tester so I can't offer an opinion on the new Safari preview.
    edited January 11
  • Reply 4 of 11
    wood1208wood1208 Posts: 1,478member
    This shows too many lawyers/law firms struggling for business so going after anyone they can to make money. Stocks can go up or down because of number of reasons including fake news, unknown flaws in product at the time of release. If company don't address flaws in timely manner than it's ok to allow law suits otherwise should be outlawed
    racerhomie3randominternetpersonLatko
  • Reply 5 of 11
    volcan said:
    this was COMING! thats for sure... it was a matter of WHEN. Interesting I switched my work computer from a Haswell CPU to the new AMD 1700 overclocked. This sort of makes me feel better. 
    Sort of depends on how Microsoft patches the bugs. They could write an exception for AMD or they may just code a single patch for all currently supported Windows versions, (same with Linux). If there is just one universal patch for the entire platform it will probably affect performance regardless of what CPU you are using. Interestingly though, Microsoft is warning the patch will degrade performance but somehow Apple appears to have patched, at least Meltdown, with no noticeable degradation. We'll see about Spectre. I'm not a beta tester so I can't offer an opinion on the new Safari preview.
    Well thats just it, no way to know for sure now... Patch was pulled and finger pointing as usual.  Edit: with AMD saying MELTDOWN is not really effecting AMD chips. At least none that anyone has been able to demonstrate, compared to INTEL Chips. 
    edited January 11
  • Reply 6 of 11
    jbdragonjbdragon Posts: 1,781member
    this was COMING! thats for sure... it was a matter of WHEN. Interesting I switched my work computer from a Haswell CPU to the new AMD 1700 overclocked. This sort of makes me feel better. 
    Now sure why as AMD has issues also. In fact MS had to stop Updating Windows fix for those with AMD because it was screwing up those computers.
  • Reply 7 of 11
    jbdragon said:
    this was COMING! thats for sure... it was a matter of WHEN. Interesting I switched my work computer from a Haswell CPU to the new AMD 1700 overclocked. This sort of makes me feel better. 
    Now sure why as AMD has issues also. In fact MS had to stop Updating Windows fix for those with AMD because it was screwing up those computers.
    For the Spectre update - has or had something to do with AV software (from what I read). More specifically I  am referring to MELTDOWN, when INTEL said everyone (All chip makers) did, AMD called them out on it. None the less this is only an incentive for Apple to make processors in-house. Although I wish they would open up to using AMD as well. who knows. 

    Edit - Grammer, my brain makes me write faster than I read, so I make many grammar mistakes. 
    edited January 11
  • Reply 8 of 11
    fastasleepfastasleep Posts: 1,576member
    volcan said:
    this was COMING! thats for sure... it was a matter of WHEN. Interesting I switched my work computer from a Haswell CPU to the new AMD 1700 overclocked. This sort of makes me feel better. 
    Sort of depends on how Microsoft patches the bugs. They could write an exception for AMD or they may just code a single patch for all currently supported Windows versions, (same with Linux). If there is just one universal patch for the entire platform it will probably affect performance regardless of what CPU you are using. Interestingly though, Microsoft is warning the patch will degrade performance but somehow Apple appears to have patched, at least Meltdown, with no noticeable degradation. We'll see about Spectre. I'm not a beta tester so I can't offer an opinion on the new Safari preview.
    You don’t need to be a beta tester, pretty sure you can download these without even a developer account:

    https://developer.apple.com/safari/download/
  • Reply 9 of 11
    volcanvolcan Posts: 1,637member
    fastasleep said:
    You don’t need to be a beta tester, pretty sure you can download these without even a developer account:
    I actually have a developer account. I just don't want any beta software on my machine.
    holmstockd
  • Reply 10 of 11
    LatkoLatko Posts: 103member
    wood1208 said:
    This shows too many lawyers/law firms struggling for business so going after anyone they can to make money. Stocks can go up or down because of number of reasons including fake news, unknown flaws in product at the time of release. If company don't address flaws in timely manner than it's ok to allow law suits otherwise should be outlawed
    Anybody knows that there is no direct causal relation that can be proven between factual revelations and stock price - as there could have been so many other factors.
    Lawyers - stockholders: 1-0
  • Reply 11 of 11
    adm1adm1 Posts: 868member
    So, flaw reported on 2nd Jan, Intel confirmed 3rd Jan, guy sold shares on the 4th. I can't see what's wrong here - if he sold them knowing the flaw and before it was public then fair enough but it all seems above board to me.
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