Judge Dismisses Intel Shareholder Lawsuit Over $7B Foundry Losses

Plaintiffs failed to prove Intel misled investors about financial restructuring and losses tied to its foundry operations.

A U.S. federal judge dismissed a shareholder lawsuit accusing Intel of concealing a $7 billion operating loss in 2023, which led to a $32 billion market value drop in April 2024.
The court found plaintiffs incorrectly attributed the loss solely to Intel Foundry Services, rather than the broader internal foundry division, and ruled there was no evidence of fraud.
Statements by former CEO Patrick Gelsinger about 'growing demand' for Intel's foundry offerings were deemed specific to customer commitments and not misleading about overall company performance.
Intel's financial reporting changes in 2024 revealed the $7 billion loss, sparking investor concerns, but the judge determined the changes did not constitute deception.
While the lawsuit was dismissed, plaintiffs may file an amended complaint, leaving the possibility of further legal action open.