Intel, a chipmaker that has recently been in the headlines for a handful of terrible reasons, including the laying off of 15K employees as part of a cost-reduction plan and the instability of its newer desktop processors (i.e., 13th and 14th Gen Core CPUs), is about to face another lawsuit, one that has been launched by shareholders who allege the chipmaker fraudulently concealed problems that ultimately caused the company’s market value to sink more than $32 billion in a single day, according to online reports. The news comes a week after Intel CEO Pat Gelsinger announced that he would be remaking the company, telling employees that the current Intel is too complex, with too much bureaucracy.
From a report:
- “The proposed class action against Intel, Chief Executive Patrick Gelsinger and Chief Financial Officer David Zinsner was filed in San Francisco federal court.”
- “Shareholders said they were blindsided when Intel revealed on Aug. 1 that its so-called foundry business for making chips on contract for outsiders was in their words ‘floundering,’ costing billions of dollars extra even as revenue declined.”
- “They said the Santa Clara, California-based company’s materially false or misleading statements regarding the business and its manufacturing capabilities inflated its stock price from Jan. 25 to Aug. 1.”
- “Intel had no immediate comment.”
Some good news from Intel’s CEO:
Panther Lake and Clearwater Forest, lead products on Intel 18A, are out of the fab, powered on, have booted operating systems, and are on track to start production next year. Additionally, Intel 18A has brought together two critical innovations to enable customers to make leaps…
— Pat Gelsinger (@PGelsinger) August 6, 2024
Gelsinger told employees this month:
…there has never been a greater need for what we do. The world will increasingly run on silicon – and the world needs a healthy and vibrant Intel. That’s why the work we are doing is so consequential. Not only are we remaking a great company, but we are also creating technology and manufacturing capabilities that will reshape the world for decades to come. And this is something we should never lose sight of as we push forward in pursuit of our goals.