SAN DIEGO, May 15, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder representative purchased or otherwise acquired Intel Corporation (NASDAQ: ) during January 25, 2024 The class action lawsuit was filed on April 25, 2024 by all individuals and entities holding securities. The company’s product portfolio includes central processing units (CPUs), chipsets, processors, graphics processing units (GPUs) and other semiconductor products.
For more information, submit a form, email attorney Aaron Dumas, Jr., or call us at (800) 350-6003.
Allegation: Robbins Law Firm Is Investigating Allegations That Intel Corporation (INTC) Misrepresented Its Business Outlook
According to the complaint, on October 11, 2022, CEO Pat Gelsinger announced that the company would move to an internal foundry model (Internal Foundry or Foundry model). Under the internal foundry model, Intel will recognize revenue generated from external foundry customers and Intel products, as well as technology development and product manufacturing costs historically allocated to Intel products. The company highlighted the cost savings and profit-enhancing benefits that the in-house foundry model will bring, as well as the beneficial impact it will have on IFS.
The complaint also alleges that on April 2, 2024, Intel issued a press release disclosing a retrospective revision to the company’s financial results under the new Foundry model reporting structure, showing that the Foundry segment had an operating loss of $7 billion and sales of $18.9 Dollar. Affected by this news, Intel’s stock price fell by $3.61, or 8.2%, on April 3, 2024, to close at $40.33 per share.
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On April 25, 2024, after the market closed, Intel released its financial results for the first quarter of 2024. The first quarter reported the company’s performance under the Foundry model; the financial report showed that the company’s foundry department revenue fell by 10% compared with the same period last year. %, to US$4.4 billion. Affected by this news, Intel’s stock price fell by US$3.23, or 9.2%, to close at US$31.88 per share on April 26, 2024.
Plaintiffs argue that Defendants failed to disclose to investors during the Class Period that: (1) the growth of Intel Foundry Services (“IFS”) was not indicative of reportable revenue growth for the internal foundry segment; (2) Foundry’s growth in 2023 A significant operating loss occurred in 2018; (3) The foundry’s product profits declined due to a decline in internal revenue; (4) Therefore, the Foundry model will not be a strong driving force for the company’s IFS strategy.
What should we do now: You may be eligible to participate in a class action lawsuit against Intel Corporation. Shareholders who wish to serve as class plaintiffs must file a motion with the court by July 2, 2024. You do not have to be involved in the case to be eligible for compensation. If you choose to take no action, you may remain absent from the Class Membership.For more information please click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins Law Firm: Some law firms that issued press releases on the matter did not actually file securities class action lawsuits; Robbins Law Firm did. As a recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been helping shareholders recover losses, improve corporate governance structures and hold corporate executives accountable for misconduct since 2002. More than $1 billion in compensation for shareholders.
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touch:
Aaron Dumas Jr.
Robbins Law Firm
5060 Shoreham Square, St. 300
San Diego, CA 92122
adumas@robbinsllp.com
(800)350-6003
www.robbinsllp.com
https://www.facebook.com/RobbinsLLP/
https://www.linkedin.com/company/robbins-llp/
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