The crisis continues, in various forms, Intelwhich now comes accused even by its own investors: some of these have started a class action against the companyguilty of having hidden the technical problems of some processors that led to the subsequent chaos, resulting in weak financial numbers and the suspension of dividends.
At the moment it is a limited group, the Construction Laborers Pension Trust of Greater St. Louisa Missouri pension fund, which is nevertheless proving to be quite combative towards Intel. It is one of the group’s shareholders, and recently filed a class-action lawsuit in federal court in San Francisco.
In it, the Trust names Chief Executive Officer Pat Gelsinger and Chief Financial Officer David Zinsner as key recipients, reporting that information Intel withheld from investors led to low results, mass layoffs, suspension of dividends and a $32 billion market cap collapse.
Domestic production as responsible for the collapse
According to the document, Intel reportedly told investors that designing and manufacturing chips in its own factories would save it between $8 billion and $10 billion by the end of 2025.
However, the situation is turning out to be quite different.
“Unbeknownst to investors, however, Intel’s manufacturing business was tanking, costing billions of dollars more than shareholders had been led to believe, while revenue growth turned to decline.”
Intel recently reported revenue of $12.83 billion in its fiscal second quarter, down 1 percent from a year earlier and missing analysts’ forecasts of $12.94 billion. shares fell 26% in a single day, reaching the worst result since 2013 and even since 1974, considering the single day performances.
The class-action lawsuit specifically points to the decision to move production in-house, within a construction model that has not lived up to expectations and which would have been responsible for the 62% decline in the share price recorded in the last six months.
Intel has recently been embroiled in a scandal over faulty 13th and 14th Gen CPUs that can cause permanent damage to some PCs. It has also postponed Intel Innovation 2024.
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