Lawsuit Targets Intel Ex-CEO and Co-CEO Over Foundry Disclosures

Former Intel CEO Pat Gelsinger and current co-CEO David Zinsner face a lawsuit demanding they surrender their compensation over alleged Intel Foundry

Lawsuit Targets Intel Ex-CEO and Co-CEO Over Foundry Disclosures

Former Intel CEO Pat Gelsinger and current interim co-CEO and CFO David Zinsner are facing a lawsuit filed by Intel shareholder LR Trust. The lawsuit alleges mismanagement and misleading disclosures regarding the performance of Intel Foundry, demanding the return of their compensation. Allegations of Mismanagement and Misleading Statements The lawsuit accuses Gelsinger and Zinsner of failing to communicate the poor performance of Intel Foundry (IFS), which struggled to attract major clients and incurred substantial losses. LR Trust also claims Intel failed to disclose critical risks in its 2024 Proxy Statement and issued misleading statements about IFS's growth potential. The lawsuit asserts that Intel misrepresented IFS's financial condition, operating losses, and declining internal revenue. Specifically, Intel's production unit reportedly lost $7 billion in 2023, with losses worsening in 2024. The plaintiffs seek the return of Gelsinger's $207 million salary earned du…

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