The lawsuit alleges that management breached its fiduciary duties and made unreasonable expenditures on company assets.
The main reason for this was the failed Intel Foundry Services (IFS) strategy. The division recorded an operating loss of $7 billion in 2023 and $2.83 billion in the second quarter of 2024.
Financial problems led to dividend cuts and layoffs. Gelsinger stepped down as CEO in December.
Shareholders also accuse management of a lack of transparency, saying corporate reports fail to disclose IFS’s true risks and losses. The company has been accused of misleading investors about its business prospects.
Intel declined to comment on the lawsuit.
Source: Ferra
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