Nothing on Earth passes without a trace.
When a public company rolls out a whole bunch of not very pleasant news at once, which leads to a sharp decline in its capitalization, shareholders usually do not like it, and they often sue the issuer’s management, as happened with Intel Corporation. According to information Reutersa group of the company’s shareholders filed a lawsuit against it, accusing management of concealing information about the existence of financial problems in the business.
Image source: Intel
The lawsuit, filed in the US Federal Court in San Francisco, accuses Intel, as well as CEO Patrick Gelsinger and CFO David Zinsner, of concealing information about the company’s dismal financial performance between January 25 and August 1 of this year. According to the plaintiffs, until Intel’s quarterly report was published in early August, investors did not have a full understanding of the situation that led to losses in the second quarter, a 15% layoff of personnel, and the need to save up to $10 billion in various areas by the end of 2025. Since Intel’s corresponding statements earlier this month, the company’s stock price has fallen by 34.6%, with the company’s capitalization falling by more than $32 billion on the first day of trading alone. Shareholders have decided that Intel’s executives should be held accountable for this.
