NEW YORK, May 27, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Intel Corporation (“Intel” or “the Company”) (NASDAQ: INTC) and certain of its officers.
Class Definition:
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Intel securities between January 25, 2024 and April 25, 2024, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/INTC.
Case Details:
According to the Complaint, on October 11, 2022, Intel’s Chief Executive Officer announced a shift to an “internal foundry model” (the “Internal Foundry” or “Foundry” model). Under the Internal Foundry model, Intel would recognize revenues generated from both external foundry customers and Intel Products, as well as technology development and product manufacturing costs historically allocated to Intel Products.
Then, on June 21, 2023, according to the Complaint, the Company provided an update on the Foundry model, explaining that, beginning in the first quarter of 2024, the Company would separate out all manufacturing services into a separate group, inclusive of Intel Foundry Services (“IFS”), manufacturing, and technology development, to form the Foundry, and implement a new financial reporting structure to recognize this reorganization, under which Foundry would be responsible for its own reportable profit and losses (“P&Ls”). The Company emphasized the cost saving and margin improving benefits the Internal Foundry model would provide and the tailwind it would bring to IFS.
Next, on April 2, 2024, according to the Complaint, after the markets closed, Intel issued a press release which disclosed a retrospective revision of the Company’s financial results under the new Foundry model reporting structure, revealing that the Foundry segment experienced an operating loss of $7 billion on sales of $18.9 billion in 2023, that Foundry revenue in 2023 was $18.9 billion, down $8.6 billion from 2022, and that the segment’s operating loss included a $2.1 million in lower product profit driven by lower internal revenue.
On this news, Intel’s stock price fell $3.61, or 8.2%, to close at $40.33 per share on April 3, 2024, on unusually heavy trading.
Additionally, on April 25, 2024, according to the Complaint, after the markets closed, Intel released its first quarter 2024 financial results, the first quarter reporting the Company’s results under the Foundry model. The results revealed the Company’s Foundry segment declined 10% compared to the same quarter last year, to a revenue of $4.4 billion.
On this news, Intel’s stock price fell $3.23, or 9.2%, to close at $31.88 per share on April 26, 2024, on unusually heavy trading.
The Complaint alleges that throughout the Class Period, Intel made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Company failed to disclose to investors:
(1) the growth of Intel Foundry Services was not indicative of revenue growth reportable under the Internal Foundry segment;
(2) the Foundry experienced significant operating losses in 2023;
(3) that the Foundry experienced a decline in product profit driven by lower internal revenue;
(4) as a result the Foundry model would not be a strong tailwind to the Company’s IFS strategy; and
(5) that, as a result of the foregoing, Intel’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Therefore, according to the Complaint, as a result of Intel’s wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, investors have suffered significant losses and damages.
What’s Next?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/INTC or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Intel you have until July 2, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller,
332-239-2660 | info@bgandg.com
