Intel Sued by Shareholders After $32 Billion Evaporation of Market Value in One Day

On August 7, 2024, according to media reports, Intel shareholders filed a class-action lawsuit against Intel in the Federal Court in San Francisco. The lawsuit alleges that Intel "fraudulently concealed the company's problems", which led to its weak performance, layoffs and suspension of dividends, and the company's market value evaporated by more than $32 billion (about 229.8 billion yuan) within one day after the release of the latest financial report. Besides Intel, Intel CEO Patrick Gelsinger and CFO David Zinsner were also named as defendants.

Intel shareholders pointed out that Intel's financial report disclosed on August 1 showed that its foundry business was not progressing smoothly, and operating costs were still rising while revenue was declining, catching company shareholders off guard. They believe that Intel made significant false or misleading statements about its business and manufacturing capabilities during the period from January 25 to August 1 this year, pushing up its share price.

Intel has not responded to this matter. On August 7, Intel's (Nasdaq: INTC) share price fell 3.63% to close at $18.99 per share, with a total market value of $81.2 billion. According to Wind data, Intel's share price has fallen 61.94% since 2024.