Intel is once again at the center of a court battle. Shareholders have filed a derivative lawsuit against company executives, including Pat Gelsinger, accusing them of violating securities laws and mismanaging corporate assets. The lawsuit, brought on behalf of the company, seeks to recover damages if they are awarded, with Intel paying for the litigation costs.
The allegations center around non-performance, illegal enrichment, and embezzlement of corporate funds. Specifically, the focus is on Gelsinger's compensation, which totaled over $207 million for the years 2021-2023. Investors are seeking compensation for their losses and fines.
The main emphasis of the lawsuit is on Intel's foundry division, which incurred a $7 billion loss in 2023 and a $2.83 billion loss in the second quarter of 2024. Shareholders claim that the management failed to disclose risks and breached their obligations to shareholders.
The lawsuit highlights the company's failure to disclose risks and mismanagement of its foundry division, which has resulted in significant losses. The consequences of these actions are being brought to light, and it remains to be seen how the lawsuit will unfold.