Intel Corp slapped with 32 class action lawsuits against the company in connection with security flaws in its microchips

Team SoOLEGAL 19 Feb 2018 11:50am

Intel Corp slapped  with  32 class action lawsuits against the company in connection with security flaws in its microchips

Intel in its regulatory filing said that shareholders and customers have filed 32   class action cases against the company .Thirty customers have made a charge that users were harmed by Intel’s “actions and/or omissions” related to protection of data, which could allow hackers to steal it from computers.Intel said it can not estimate the potential loss that may arise out of the suits.

Security researchers at the start of January publicized two flaws, dubbed Spectre and Meltdown, that affected nearly every modern computing device containing chips from Intel, Advanced Micro Devices Inc and ARM Holdings.

The company did try to fix the issue but changes led to slowdown in the performance of the system.

The company said two other were securities class actions, in which it has been alleged some of its officers violated securities laws by making statements about products or its internal controls that were later found to be wrong or misleading.

The company’s filing also listed three individual Intel shareholders who have filed case on alleged charges of insider trading.

Intel Chief Executive Brian Krzanich sold 889,879 shares in the company on Nov. 29 as per a trading plan adopted on Oct. 30, making roughly $39 million from the sale, well before the details of the flaw were made public.

Bloomberg reported last month that although Intel says Krzanich’s sales were part of a pre-arranged stock plan, securities lawyers believed the larger-than-usual transaction could be examined by the U.S. Securities & Exchange Commission (SEC).

Krzanich said last month that Google researchers told Intel of the flaws “a while ago”.

Google says it informed the affected companies about the Spectre flaw on June 1, 2017 and reported the Meltdown flaw after the first flaw but before July 28, 2017.

The two securities-related class action suits were filed by individuals who claim to represent classes of buyers of Intel’s stock between July 27 last year and Jan. 4.

-Contents taken from Reuters

Tagged: Intel   Law suit  
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