Intel To Face Massive Lawsuit From Shareholders, As They Felt “Blindsided” By The Firm’s Financial Results
Intel is expected to face a massive lawsuit, too, from its shareholders, who believe that the firm "blindsided" them with the recent earnings call.
Intel's Legal Problems Just Keep Growing, As Shareholders File A New Lawsuit Amid The $32 Billion Drop In Valuation
Well, it looks like Intel is now set to face its first bit of legal action from the markets, but this time, it is coming from the company's stakeholders since, according to a report from Reuters, the involved parties feel like they have been betrayed by the company. Intel's past quarters haven't been going too well since the firm has taken a huge financial hit, mainly due to the recent 14th Gen & 13th Gen CPU instability issues, along with how Intel's divisions, particularly the foundry business, have been in dwindling conditions.
Related Story Intel’s “0x129” Microcode Mitigates 14th Gen & 13th Gen CPU Instability Issues, Benchmarks Reveal No Performance Downgrades
However, the new lawsuit on Intel by shareholders claims that the firm "deliberately" suppressed the economic downturn they were facing and instead assured that everything was fine. It is said that with the recent earnings calls, investors were shocked at Intel's statements and actions, which included a massive layoff and a gigantic drop in revenue streams. Following the financial report, Intel lost a whopping $32 billion in market valuation, which ultimately had a drastic effect on the positions of the shareholders.
The new lawsuit lists Intel's CEO Pat Gelsinger and CFO David Zinsner, and the case was filed in San Francisco federal court by the Construction Laborers Pension Trust of Greater St. Louis. This poses another huge trouble for Intel, apart from all the other fiascos the company is facing, given that recently, the company has been faced with troublesome CPU instability problems, which has destroyed consumer trust and has significantly affected the sales of the company's existing CPUs.
Apart from this, Intel has several other potential
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