{"id":23849,"date":"2025-07-25T05:50:45","date_gmt":"2025-07-25T05:50:45","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=833185"},"modified":"2025-07-25T05:50:45","modified_gmt":"2025-07-25T05:50:45","slug":"intel-beats-shareholder-lawsuit-over-32-billion-stock-plunge","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2025\/07\/25\/intel-beats-shareholder-lawsuit-over-32-billion-stock-plunge\/","title":{"rendered":"Intel Beats Shareholder Lawsuit Over $32 Billion Stock Plunge"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/12\/gavel-and-legal-books-461313643-bigstock-580x326.jpg\"><\/p>\n<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/12\/gavel-and-legal-books-461313643-bigstock-scaled.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/national\/2025\/07\/25\/833185.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/national\/2025\/07\/25\/833185.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p class=\"tr-story-p1\">A federal judge dismissed a lawsuit accusing Intel of defrauding shareholders by concealing problems in a business where it manufactured chips for outside customers, leading to a $32 billion one-day plunge in its market value.<\/p>\n<p>While saying she \u201cunderstands plaintiffs\u2019 frustrations,\u201d U.S. District Judge Trina Thompson in San Francisco ruled on Wednesday that Intel did not wait too long to reveal a $7 billion fiscal 2023 operating loss in its foundry business.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"lawsuits\" data-revive-companies=\"intel\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>Intel\u2019s stock price sank 26% last August 2, one day after the chipmaker announced more than 15,000 <a class=\"bold1 tr-link\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/50863\/000005086324000122\/q224_earningsrelease.htm\" target=\"_blank\" rel=\"noopener\">layoffs<\/a> and suspended its dividend, hoping to save $10 billion in 2025.<\/p>\n<p>The Santa Clara, California-based company created the foundry business in 2021 to serve customers including Amazon.com and Qualcomm, while still making chips and wafers for internal use.<\/p>\n<p>In a 21-page decision, Thompson said Intel made clear that foundry results would be \u201cobscured\u201d until 2024, meaning its earlier financial reporting was not false and misleading.<\/p>\n<p>Thompson also cited an \u201coverarching policy consideration\u201d that because Intel\u2019s public statements suggested a \u201ctrial-and-error\u201d approach to the foundry business, the company could have faced risks from reporting preliminary, unaudited data.<\/p>\n<p>The judge dismissed an earlier version of the lawsuit in March. Wednesday\u2019s dismissal was with prejudice, meaning the shareholders cannot sue again.<\/p>\n<p>Intel had been accused of inflating its stock price from January 25 to August 1, 2024.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"lawsuits\" data-revive-companies=\"intel\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>Lawyers for the shareholders did not immediately respond to requests for comment on Thursday. Intel and its lawyers did not immediately respond to similar requests.<\/p>\n<p>Intel has struggled to compete with rival chipmakers such as Nvidia, Advanced Micro Devices, Samsung Electronics and Taiwan\u2019s TSMC and benefit from growth in artificial intelligence.<\/p>\n<p>The company lost $18.8 billion in 2024, its first annual loss since 1986.<\/p>\n<p>The case is In re Intel Corp Securities Litigation, U.S. District Court, Northern District of California, No. 24-02683.<\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/lawsuits\/\" class=\"btn btn-sm btn-primary tagtag\">Lawsuits<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"833185\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! 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