A U.S. District Judge dismissed a lawsuit from Intel shareholders who accused the company of concealing a $7 billion operating loss in its foundry business. The plaintiffs argued that Intel delayed revealing the financial struggles, leading to widespread layoffs and a decline in market value. Judge Trina Thompson ruled that shareholders were not misled about the financial results of Intel’s internal foundry unit. She also determined that CEO Patrick Gelsinger’s statements about the company’s progress were directed at customers rather than financial performance. Intel officially disclosed the losses in April 2024 after restructuring its financial reporting.
Despite winning the lawsuit, Intel continues to face financial difficulties, with its market value dropping by $32 billion in 2024. The company announced layoffs affecting up to 19,000 employees as it works to reduce costs. Intel has also postponed the construction of its $28 billion fabrication project in Ohio, delaying the completion of its two new fabs to 2030 and 2031. However, in November, Intel secured $7.9 billion in funding from the CHIPS and Science Act to support its semiconductor manufacturing expansion.
