LR Trust, an Intel shareholder, has filed a lawsuit related to the performance of Intel Foundry and against former and current executives as well as directors of the company (as discovered by The Register). The lawsuit accuses Pat Gelsinger, the former chief executive of Intel, and David Zinsner, an interim co-CEO and CFO of Intel, of mismanagement, misleading disclosures, and demanding the return of their compensations and other gains to the company. Among the listed demands, the plaintiffs seek the entire sum of Gelsinger's $207 million salary earned during his tenure in 2021, 2022, and 2023, which would then be paid back to Intel.
The lawsuit claims that Pat Gelsinger and David Zinsner failed to communicate the poor performance of the Intel Foundry division, which had struggled to attract significant interest from major fabless designers while bleeding money. The lawsuit accuses Intel of failing to disclose critical risks in its 2024 Proxy Statement, a claim similar to one for which the company the company was sued for earlier this year. The lawsuit further claims that executives and board members allowed misleading statements about Intel Foundry Services' (IFS) growth potential, obscuring substantial operating losses and declining internal revenue.
