A California federal court dismissed a shareholder lawsuit against Intel, determining that investors misattributed a significant $7 billion loss to the company's foundry arm, Intel Foundry Services (IFS). Judge Trina Thompson clarified that losses were related to Intel's internal operations and not reflective of IFS's performance, which has been reported positively by management. The case was dismissed as there were no misleading statements made regarding IFS's contractual commitments, and the restructuring of Intel's manufacturing reporting was properly communicated. Intel's leadership, including now former CEO Pat Gelsinger, had always positioned IFS in the context of growing customer interest and commitments.
Intel's restructuring and accounting change have clarified that losses attributed to Intel Foundry Services (IFS) stemmed from its internal operations, not from IFS itself.
Judge Thompson concluded that Gelsinger's statements regarding demand for IFS were based on commitments, not false revenue expectations, dismissing the plaintiffs' claims.
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