Intel CEO sold shares before chip security flaw was disclosed

Published January 04, 2018
FOXBusiness

Intel CEO Brian Krzanich sold millions of dollars of stock and options in late November, before a security flaw in the chipmaker’s products was publicly disclosed.

Government filings are showing that Krzanich sold about $39 million in shares and options in his company several months after Google informed the chipmaker of a serious security problem affecting its products. The transactions occurred in late November, before the flaw was public knowledge.

The company didn't respond to the Associated Press’ inquiries about the timing of Krzanich's divestments.

Intel says it was notified about the bugs in June and has worked with other companies to verify the vulnerability and develop ways to fix or mitigate it. It says it planned to publicly disclose the problem next week. It was forced to address it earlier because of a Wednesday news report.

GBH Insights Chief Strategy Analyst Daniel Ives says Krzanich's stock sale was "cookie cutter" and not a concern.

A security flaw in microprocessors developed by Intel and other companies could allow hackers to gain access to sensitive data, including passwords and other personal data. 

Intel shares are down about 5% in trading since Tuesday.

The Associated Press contributed to this report.