A federal judge on Wednesday dismissed a lawsuit against Intel, which accused the company and its management of hiding financial troubles of its semiconductor manufacturing division in 2023, reports Reuters. The U.S. District Judge Trina Thompson in San Francisco ruled that plaintiffs failed to present evidence that Intel and its executives committed any wrongdoing. The case was dismissed without prejudice, meaning the plaintiffs can file an amended complaint with stronger evidence.
Plaintiffs had argued that Intel and its then-CEO Pat Gelsinger and then-CFO David Zinsner concealed a $7 billion loss of its Intel Foundry unit in 2023, which led to stock inflation as well as a consequent massive $32 billion drop of the company's market capitalization in April 2024, when the company disclosed losses of its newly formed Intel Foundry division for 2023 and Q1 2025.
