Intel Sued by Shareholders for Alleged Concealment of Financial Challenges

Thursday, 8 August 2024, 10:07

Intel has been hit with a lawsuit from shareholders claiming the company concealed significant issues that led to disappointing second-quarter results. The lawsuit, filed in a San Francisco federal court, accuses Intel of fraudulent behavior, contributing to its decision to suspend dividends and lay off 15% of its workforce. The lawsuit names Intel CEO Patrick Gelsinger and CFO David Zinsner as defendants, seeking unspecified damages.
Yahoo Finance
Intel Sued by Shareholders for Alleged Concealment of Financial Challenges

Overview of the Lawsuit

On Wednesday, Intel was sued by shareholders for allegedly concealing financial problems that resulted in subpar second-quarter performance.

Key Allegations

  • Shareholders claim fraudulent actions led to weak earnings.
  • Due to these issues, Intel has suspended its dividends.
  • The company plans to cut its workforce by 15%.
  • The lawsuit has been filed in San Francisco federal court.

Defendants

Among the defendants are Intel CEO Patrick Gelsinger and CFO David Zinsner.

Conclusion

This lawsuit seeks unspecified damages and highlights ongoing challenges faced by Intel in the competitive chipset market.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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