Intel, already facing turbulent waters, has been thrown into a new wave of controversy. A class-action lawsuit, filed in Northern California on Wednesday, alleges that Intel CEO Pat Gelsinger and CFO David Zinsner misled investors regarding the health of Intel’s foundry business. This lawsuit comes as a fresh blow to the company, which recently announced a $1.6 billion loss and laid off 15% of its workforce.
The lawsuit, brought by the Construction Laborer’s Pension Trust of Greater St. Louis, claims that Gelsinger and Zinsner made false statements about the success of Intel’s foundry labs, which are being built across various locations including Arizona, Ohio, New Mexico, Ireland, Germany, and Israel. These labs represent a major investment for Intel, with billions of dollars poured in from investors. The plaintiffs allege that misleading statements about the foundries were made between January 25 and August 1, 2024, artificially inflating share prices.
This legal action comes just one week after Intel’s disappointing financial report, which revealed the significant loss and substantial job cuts. The company’s struggles in its manufacturing operations are raising concerns about its future viability, and this lawsuit further intensifies the pressure on Intel to provide transparency and accountability regarding its business practices.
