Securities law entities circle Intel as CEO stock sales draw scrutiny
Intel to form new cybersecurity group amid chip flaw
SECURITIES LAW FIRMS announced Monday that they were pursuing investigations of a flaw affecting Intel chips as a prelude to class-action litigation against the company. The Rosen Law Firm is probing “allegations that Intel may have issued materially misleading business information to the investing public,” it said, adding it is “preparing a class-action lawsuit to recover losses suffered by Intel investors.” Similar announcements came from Levi & Korsinky, Block & Leviton and Hagens Berman Sobol Shapiro, with the firms also pointing to reports that Intel Chief Executive Officer (CEO) Brian Krzanich sold Intel stock in November months after the company was informed of the defect by Google.
NEW YORK — Securities law firms announced Monday that they were pursuing investigations of a flaw affecting Intel chips as a prelude to class-action litigation against the company.
The Rosen Law Firm is probing “allegations that Intel may have issued materially misleading business information to the investing public,” it said, adding it is “preparing a class-action lawsuit to recover losses suffered by Intel investors.”
Similar announcements came from Levi & Korsinky, Block & Leviton and Hagens Berman Sobol Shapiro, with the firms also pointing to reports that Intel Chief Executive Officer (CEO) Brian Krzanich sold Intel stock in November months after the company was informed of the defect by Google.
Intel shares were under pressure last week after researchers pointed to the so-called Spectre and Meltdown vulnerabilities affecting the chips powering most modern PCs and many mobile devices.
Researchers at Google showed how a hacker could exploit the flaw to get passwords, encryption codes and more, even though there have been no reports of any attacks using the vulnerability.
Intel said last week that it has issued updates for more than 90% of the processor products introduced in the last five years. The company has described the issue as an industry-wide problem and said it is working with other technology companies to address the issue.
Mr. Krzanich sold $39 million worth of stock on Nov. 29, netting $25 million in profits, according to an article Monday in The Wall Street Journal, which quoted analysts and lawyers who said the transactions could raise questions with regulators.
Intel did not immediately respond to a request for comment from AFP.
TO FORM NEW CYBERSECURITY GROUP AMID CHIP FLAW
Intel Corp. will create a new internal cybersecurity group in the wake of recently disclosed flaws in its microchips, the Oregonian newspaper reported on Monday, citing a memo sent to company employees.
The new group would be run by Intel human resources chief Leslie Culberstone who has worked in the chipmaker since 1979 and would be called, “Intel Product Assurance and Security,” according to the report.
“It is critical that we continue to work with the industry, to excel at customer satisfaction, to act with uncompromising integrity, and to achieve the highest standards of excellences,” the Oregonian quoted Intel CEO Brian Krzanich as saying in the memo.
Intel declined to comment on the report.
The largest chipmaker confirmed earlier this week that the security issues reported by researchers in the company’s widely used microprocessors could allow hackers to steal sensitive information from computers, phones and other devices.
Mr. Krzanich also appointed Intel Vice-President Steve Smith to the newly formed group and reassigned several top executives to the new organization, the newspaper reported. The changes would be immediately effective. —