A federal judge in San Francisco dismissed a lawsuit accusing Intel of misleading investors about its foundry business, which makes chips for other companies.
The judge said Intel did not delay revealing its $7 billion operating loss in the unit and that earlier financial reporting was not false.
Intel’s stock dropped 26% on August 2, 2024, wiping out $32 billion in market value in one day. The decline came after Intel announced over 15,000 job cuts and suspended its dividend to save $10 billion by 2025.
Intel launched the foundry business in 2021 to produce chips for companies such as Amazon and Qualcomm, while still making products for itself. U.S. District Judge Trina Thompson said Intel had already told investors that full results from the foundry unit would not be available until 2024.
She said Intel’s public statements showed a trial-and-error approach and that reporting early data could have brought more risk. The case was dismissed with prejudice, which means shareholders cannot file it again.
Investors had claimed Intel inflated its stock price between January 25 and August 1, 2024. They and Intel did not respond to requests for comment.
Intel reported an $18.8 billion loss in 2024, its first annual loss since 1986. It continues to face competition from Nvidia, AMD, Samsung, and TSMC.
