I also have an E5420 and I have the exact same issue. It is really
annoying. There used to be a work around

echo N> /sys/module/drm_kms_helper/parameters/poll

This would fix the slow downs but had other side effects like not
detecting displays automatically etc.

This should not be a "Certified for Ubuntu" Laptop it quite obviously
has not been tested!

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https://bugs.launchpad.net/bugs/998204

Title:
  Intel chipset driver bug on Ubuntu certified Dell Latitude E5420:
  connecting power cord makes kworker run amok

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