Intel hit with lawsuit over $32B loss, shareholders complain company hid problem
Intel is facing a shareholder lawsuit over misleading statements that inflated stock prices, following a $1.61 billion net loss and significant layoffs. The company also contends with multiple legal disputes.
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Intel is facing a lawsuit from shareholders following a significant drop in its stock price, which resulted in a loss of over $32 billion in market value. This legal action was initiated after the company announced on August 1 that it would suspend dividends and lay off more than 15,000 employees due to disappointing performance from its contract foundry and a staggering 99% revenue decline in the second quarter of 2024, leading to a net loss of $1.61 billion. The lawsuit claims that Intel, along with CEO Pat Gelsinger and CFO David Zinsner, made misleading statements that inflated the stock price prior to the announcement. This is not the only legal challenge Intel is facing; it is also involved in a patent dispute with R2 Semiconductor in Europe and is under investigation for another class action lawsuit related to instability issues in its 13th- and 14th-generation chips. As Intel struggles to keep pace with competitors like AMD and Nvidia, it hopes to regain market confidence with the upcoming launch of its next-generation processors, Lunar Lake, in September. However, ongoing issues and legal battles could jeopardize its market position.
- Intel shareholders are suing the company over misleading statements that inflated stock prices.
- The company reported a $1.61 billion net loss and suspended dividends amid significant layoffs.
- Intel is also involved in multiple legal disputes, including a patent case in Europe.
- The upcoming launch of new processors, Lunar Lake, is seen as critical for Intel's recovery.
- Intel faces intense competition from AMD and Nvidia, risking its market share.
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4 commentsI could see suing the executives, though they don't have 32 billion.
Maybe there's some insurance company that takes the hit?
I've been involved in similar class actions and they always seemed to be the idea of the lawyers, who just needed to convince one shareholder to sue himself out of spite.
Are we witnessing the end of Intel? I just don't see what future they have outside of niche markets that don't support current revenues.
What's the consensus on HN?
How is that not a crime against someone? How weak are our laws that you can knowingly sell broken products for two years and the only thing people can do is sue you?
This is water. Five-second-rule.
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Intel to shed at least 15% of staff to drive down costs
Intel plans to lay off over 16,000 employees, cut capital expenditures, suspend dividends, and outsource chip production to TSMC, following a $1.6 billion loss in Q2 2023.
Intel's Day of Reckoning Arrives: 15,000 Jobs Will Be Eliminated
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