US court dismisses fraud case against Intel over stock crash
A US court has dismissed a big fraud case against Intel.
Shareholders claimed the company hid a $7 billion loss in its chip-making business, which led to a 26% drop in stock price and wiped out $32 billion in value on August 2, 2024.
They argued Intel kept its stock price up by not revealing these losses from January 25 to August 1, 2024.
Lawsuit dismissal and Intel's current situation
On Wednesday [July 23], Judge Trina Thompson ruled that Intel had actually warned investors about possible risks with its foundry business.
She said forcing companies to share unaudited numbers early could confuse people and slow down innovation.
This is the second time this lawsuit has been dismissed.
Meanwhile, Intel is dealing with its first annual loss since 1986 and tough competition from NVIDIA, AMD, Samsung, and TSMC.
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