Intel defeats shareholder lawsuit

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Intel won the dismissal of a shareholder lawsuit accusing the chipmaker of fraudulently concealing problems in its foundry business, leading to job cuts and a dividend suspension that wiped out more than $32 billion of market value in one day.

In a decision made public on Feb 4, U.S. District Judge Trina Thompson in San Francisco rejected claims that Intel took too long to reveal a $7 billion fiscal 2023 operating loss linked to its business of making chips for outside customers.

Intel did not disclose the loss until last April, when it made changes to how it reported financial results.

But the judge said shareholders incorrectly attributed the $7 billion loss to the Intel Foundry Services business unit, and were not misled into believing the unit’s reported results “included results for the entire Internal Foundry Model.”