Intel CEO Sold Stock Before Disclosing Security Flaw. What Happens Next?
Intel recently disclosed security flaws in its widely-used microprocessors that could allow hackers to steal sensitive information from computers, phones…
January 16, 2018 at 01:47 PM
5 minute read
The original version of this story was published on Law.com
Intel recently disclosed security flaws in its widely-used microprocessors that could allow hackers to steal sensitive information from computers, phones and other devices. Software makers issued patches to protect against vulnerabilities, but Intel is facing a class action lawsuit claiming that the patches would slow computers and essentially force consumers to buy new hardware.
Although no data breaches have been reported yet, Intel's shares have dropped three percent since it confirmed the security flaw, and it appears that CEO Brian Krzanich tried to dodge this bullet, having sold $24 million of his stock options in December before disclosing the flaw. This raises the question, will a Securities and Exchange Commission, or even U.S. Department of Justice, investigation be launched?
Intel will likely have to compensate large customers for any software or hardware fixes, however, this could be the least of Intel's worries, according to Joshua M. Robbins, chair of Greenberg Gross LLP's white collar defense and governmental investigations practice groups, who sat down with Inside Counsel for an exclusive interview. Robbins provided insight on recent data breaches involving Equifax, Yahoo, Microsoft and Uber.
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