Intel hit with lawsuit alleging investors were hoodwinked by CEO and CFO

A new class-action lawsuit alleges Intel CEO Pat Gelsinger and CFO David Zinser hoodwinked investors about the health of its foundry business.

Intel hit with lawsuit alleging investors were hoodwinked by CEO and CFO
Comment IconFacebook IconX IconReddit Icon
Tech and Science Editor
Published
1 minute & 30 seconds read time

Intel has been in hot water lately, and it seems a fresh pan of boiling water has just been thrown on the company, as its CEO and CFO have now been wrapped up in a new class-action lawsuit.

Intel CEO Pat Gelsinger (left) Intel CFO David Zinsner (right)

Intel CEO Pat Gelsinger (left) Intel CFO David Zinsner (right)

The class-action lawsuit was filed in northern California Wednesday, with the Construction Laborer's Pension Trust of Greater St Louis alleging that Intel CEO Pat Gelsinger and Intel CFO David Zinsner mislead of hoodwinked investors about the health of its foundry business, or Intel's fabrication labs that are being constructed in various locations around the world.

The company has poured billions of investors' money into developing these foundry labs in the following locations: Arizona, Ohio, New Mexico, Ireland, Germany, and Israel. According to the plaintiffs, Intel's CEO and CFO made misleading statements to investors between January 25 and August 1, 2024. These statements allegedly misrepresented the overall health of these foundries, which artificially raised share prices.

"Unbeknownst to investors, however, Intel's foundry business was floundering, costing billions of dollars more than investors had been led to believe even while revenue growth in the division actually declined," the complaint reads.

"As a result of defendants' wrongful acts and omissions, and the precipitous decline in the market value of Intel stock, plaintiff and other class members ... have suffered significant losses and damages for which they seek redress through this action," the complaint reads.

Notably, this class-action lawsuit comes only a week after Intel reported a $1.6 billion loss and announced it was laying off 15% of its workforce, amounting to more than 16,000 workers being let go from the company.

Photo of the $10 -PlayStation Store Gift Card [Digital Code]
Best Deals: $10 -PlayStation Store Gift Card [Digital Code]
Country flag Today 7 days ago 30 days ago
$10 USD $10 USD
Buy
$10 USD $10 USD
Buy
$10 USD $10 USD
Buy
$50 CAD $50 CAD
Buy
$10 USD $10 USD
Buy
$10 USD $10 USD
Buy
* Prices last scanned on 2/8/2025 at 12:16 pm CST - prices may not be accurate, click links above for the latest price. We may earn an affiliate commission from any sales.

Tech and Science Editor

Email IconX IconLinkedIn Icon

Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms.

Related Topics

Newsletter Subscription