Intel sued by shareholders following 29% stock plunge
The logo of Intel at the company’s booth at the 9th China International Import Expo (CIIE) in Shanghai, China, November 5, 2026. REUTERS/Go Nakamura
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Nov 15 : Intel has been sued by shareholders who accused the US chipmaker of defrauding them by concealing the impact of a prolonged slowdown in personal computer sales that caused its stock price to plunge nearly 29 per cent in a single day.
In a proposed class action filed on Friday in the San Jose, California, federal court, shareholders led by a Michigan pension fund said Intel was too slow to disclose information about how slowing PC sales and an inventory glut would weigh on revenue.
The shareholders said Intel’s problems with PC sales and excess inventory outweighed data center construction and other benefits related to the artificial intelligence boom.
They also said Intel had the motive and opportunity to defraud by raising capital in mid-August, halfway through its “disastrous” third quarter, when it sold $23 billion of stock at $95 per share.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
The sale came as Intel looked to build out its chip contract manufacturing business, a key part of Chief Executive Lip-Bu Tan’s business strategy. Shares of Intel closed Friday at $59.66.
Intel did not immediately respond to requests for comment on Sunday.
Shares of Intel fell 28.6 per cent on October 30, wiping out about $140 billion of market value, one day after the Santa Clara, California-based company projected lower-than-expected fourth-quarter revenue and profit and forecast a prolonged slowdown in PC sales.
Tan told analysts that he was disappointed by manufacturing supply shortages, an “unprecedented memory crunch,” and resulting softness in PCs.
“We need to address these challenges with urgency,” Tan added.
Like many other large technology companies, Intel has poured money into manufacturing, but supply disruptions have made it harder to benefit from growing demand for data center chips. Meanwhile, rising memory prices have made PCs more expensive, weighing on demand.
Friday’s lawsuit, led by the City of Southfield Fire and Police Retirement System, seeks unspecified damages for Intel shareholders between July 23, 2026, and October 29, 2026. Tan and Chief Financial Officer David Zinsner are also defendants.
Intel shares are up 62 per cent this year through Friday, though they have slid from their recent peak of $142.35 on June 30.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
