Judge Dismisses Intel Shareholder Lawsuit Over $7 Billion Foundry Loss

The court ruled that Intel did not mislead investors about its foundry business, but shareholders may amend their complaint.

Intel successfully secured the dismissal of a shareholder lawsuit accusing the company of concealing a $7 billion operating loss in its foundry business.
U.S. District Judge Trina Thompson determined that the loss was misattributed to Intel Foundry Services rather than the broader internal foundry operations.
The lawsuit alleged that Intel's delayed disclosure of the loss contributed to stock price inflation, which later collapsed, erasing $32 billion in market value after a 26% share price drop.
The court found that statements by former CEO Patrick Gelsinger about 'growing demand' for Intel Foundry Services were not misleading as they referred to specific customer commitments, not overall revenue.
While the case was dismissed, the judge allowed shareholders the opportunity to file an amended complaint, leaving the possibility of further legal challenges.