Intel shareholders have filed a lawsuit against the company’s management following decisions made after the release of its quarterly report, which led to a sharp drop in stock prices and a market capitalization loss of over $32 billion in just one day.
The lawsuit was filed in federal court in San Francisco. A group of shareholders is accusing CEO Patrick Gelsinger and CFO David Zinsner of concealing the true financial state of the company. The primary concern revolves around the Intel Foundry division, which the plaintiffs claim is losing billions of dollars.
The shareholders allege that Intel’s management misled investors about the company’s actual performance between January and August 2024. This led to significant disappointment when the financial losses were revealed.
According to the report, Intel incurred net losses of $1.61 billion. The company is implementing cost cuts and reducing its workforce by up to 15% to save $10 billion by 2025. However, the stock price has dropped by 34.6% since the report’s release, sparking shareholder discontent and resulting in the lawsuit.
