[News] Intel Wins Shareholder Lawsuit Over Alleged Foundry Loss Cover-Up

According to a report from ijiwei, citing Reuters, Intel prevailed in a shareholder lawsuit concerning foundry-related losses. The lawsuit accused the semiconductor giant of misleading investors by concealing issues within its foundry business, which ultimately led to job reductions, a suspended dividend, and a single-day market value loss exceeding USD 32 billion.

As noted by the report, a ruling disclosed on Tuesday by U.S. District Judge Trina Thompson in San Francisco dismissed allegations that Intel delayed disclosing a USD 7 billion operating loss in fiscal 2023 related to its foundry business.

Intel did not reveal the loss until last April, when it made adjustment to how it reported financial results, as the report points out.

Furthermore, as noted in the report, the judge stated that former Chief Executive Pat Gelsinger’s comments last March about Intel seeing “significant traction” and “growing demand for our foundry offering” were not misguiding, as they specifically referred to individual customers rather than the company’s overall foundry revenue, which was declining.

Pat Gelsinger retired from the company in December 2024. According to a Bloomberg report citing sources, Gelsinger was reportedly forced into retirement after the board of directors lost confidence in his plans to revitalize the company and reverse its decline.

Intel’s foundry business has been consistently struggling, reporting an operating loss of USD 13.4 billion in 2024.

According to its press release, Intel Foundry generated $17.5 billion in annual revenue, reflecting a 7% decline from 2023. The downturn was even more pronounced in Q4 2024, with revenue dropping 13% year-over-year to $4.5 billion, underscoring the ongoing challenges in Intel’s foundry segment.

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(Photo credit: Intel)