If the technology issues at Intel that led to the delay of the launch of its next-generation microprocessor were bad, then it looks like it is about to get a whole lot worse for the company. Intel share price edged lower today, as news of the filing of at least three class-action lawsuits against the company has hit the newswires. Rosen Law Firm, Schall Law Firm and Glancy Prongay & Murray LLP have all filed class-action lawsuits against the company. According to court papers, investors who have suffered losses on their investments have been asked to join the lawsuit as plaintiffs to recover their monies under Federal securities laws.
The lawsuits are seeking payments for damages suffered on losses incurred on investments in Intel shares and cover Intel stocks bought between April 23 and July 23, 2020. The lawsuits allege among other things that Intel made positive statements about the company’s businesses, prospects and operations when it knew that the 7-nanometer processor would be delayed and would rely on 3rd-party companies for the successful delivery of the product. In other words, Intel is accused of deceit, causing members of the public to buy shares in the company, and which have ended up on the losing side.
Intel share price is on its way to extending a 4-day losing streak into the 5th day, with shares down nearly 20% in the last two weeks. Intel has reacted to the scandal by announcing a significant reorganization of its key technology unit. Intel is yet to respond to the class action lawsuits.
Price action on Intel now looks quite choppy over the last few months as the stock struggled to get a defined direction. Intel share price is currently testing the 47.55 support (neckline of August 2019 double bottom). A breakdown of the 47.55 support opens the door towards the 44.74 support, with 43.23 (cluster of lows of May 2019) serving as a more distant downside target.
On the flip side, a bounce from the current support, with 50.09 and 52.96 serving as potential resistance targets in the near-term. 55.84 and 57.40 remain distant but relevant resistance targets if the stock can find some form of respite from the current onslaught.
