Intel Pegged with Securities Class Action Over Post-Meltdown, -Spectre Stock Drop

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Intel Corporation and its CEO and CFO now face a class action lawsuit over the damage investors allegedly sustained following the announcement of the now-infamous “Meltdown” and “Spectre” security flaws found in Intel’s processor chips. The 20-page lawsuit primarily takes issue with allegedly false and/or misleading statements in which Intel and its officers supposedly failed to disclose to stockholders:

• That a fundamental security flaw—one that Reuters said puts “virtually all phones and computers at risk”—left Intel’s chips vulnerable to hacking; and
• That software updates to fix the defects could cause the processors to “operate 5-30 percent more slowly.”

 After the public was informed of Meltdown and Spectre, Intel’s share price on January 3 fell $1.59, or more than 3.5 percent. The following day, the case continues, numerous news outlets reported Intel’s CEO sold off $24 million worth of company stock and options in late November “after Intel was informed of vulnerabilities in its semiconductors, but before it was publicly disclosed,” leaving the defendant with only the minimum number of shares he’s required to own as CEO. Once this news was released into the open, Intel’s share price fell even further, by $0.83, the case says.