Intel shareholders have filed a derivative lawsuit against the company, alleging executives, including former CEO Pat Gelsinger, made false and misleading statements about the reorganization of a manufacturing segment. The lawsuit accuses Intel executives, including former CEO Pat Gelsinger, of violating federal securities law, breaching fiduciary duties, and other misconduct, which “resulted in substantial damage to the Company and its stockholders.”
Under the new reporting model – which Intel said was designed to “drive increased cost discipline and higher returns by providing greater transparency, accountability and incentives across the business” – the company said it would report results from Foundry as a standalone operating segment, while results from Client Computing Group (CCG); Data Center and AI (DCAI); and Network and Edge (NEX) will fall under the Intel Products heading.
A federal lawsuit was also filed in San Jose, California, by an individual named Mark Vanvalkenburgh, who alleged Intel’s Raptor Lake desktop processors were “defective, unstable, and crashing at high rates,” but the company continued to develop and sell the chips without making customers aware of the problems.
