Judge Throws Out Investors Suit Against Intel - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Judge Throws Out Investors Suit Against Intel

A U.S. District judge in San Jose granted the chipmaker's motion to dismiss, saying plaintiffs hadn't shown company officials knowingly misled investors about products or revenues in 2000.

SAN JOSE, Calif. (AP) -- A class-action lawsuit that alleged Intel Corp. executives made false statements to inflate the semiconductor giant's stock price has been dismissed.

U.S. District Judge Jeremy Fogel granted Intel's motion to dismiss Monday, saying plaintiffs failed to show company officials knowingly misled investors about Intel products or revenues in the third quarter of 2000.

In the lawsuit filed in San Jose, the investors claimed Intel made bullish statements in the summer of 2000 that drove the company's stock to an all-time high of more than $75 per share.

The run-up was quickly followed by news that Intel was canceling one chip line and delaying the launch of its Pentium 4 and Itanium processors because of design and development problems.

Within five weeks, Intel's stock dropped to just over $35--a market capitalization loss of $271 billion.

In October, the court threw out the original complaint but offered plaintiffs the opportunity to refile. In Monday's decision, the court rejected the latest claim and shut all doors to amending it further.

"We maintained all along that there's no intent on Intel's part to mislead or defraud shareholders," said Intel spokesman Chuck Mulloy. "We were simply reporting the business as it happened. We're gratified the judge agreed that there was no intent (to mislead) there."

Attorneys representing the lead plaintiff, the Hawaii Reinforcing Iron Workers Pension Trust Fund, did not return calls or E-mail messages seeking comment.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Commentary
CIOs Face Decisions on Remote Work for Post-Pandemic Future
Joao-Pierre S. Ruth, Senior Writer,  2/19/2021
Slideshows
11 Ways DevOps Is Evolving
Lisa Morgan, Freelance Writer,  2/18/2021
News
CRM Trends 2021: How the Pandemic Altered Customer Behavior Forever
Jessica Davis, Senior Editor, Enterprise Apps,  2/18/2021
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll