LICKING COUNTY, Ohio — Intel is facing more than financial problems. Now, it’s facing lawsuits over its financial health.
On Wednesday, a class action lawsuit filed in northern California by the Construction Laborer’s Pension Trust of St. Louis, allege Intel CEO Pat Gelsinger and Intel CFO David Zisner concealed the money problems in the company, and by misleading investors “caused Intel’s stock to trade at artificially inflated prices.”
The lawsuit is for the period from Jan. 25, 2024 to Aug. 1. The plaintiffs are asking for compensatory damages to be determined in a jury trial.
10TV reached out to Intel for comment but did not hear back.
Intel is facing more than one legal challenge. Abington Cole+Ellery also is involved in a class action lawsuit against the chip maker for Intel’s 13th and 14th generation Raptor Lake processors.
Intel is building a $20 billion plant in western Licking County. How this lawsuit could impact that project is unclear.
Joe Albano, Chief Analyst with Tech Cache, which follows the tech sector, believes the opening of the fabrication plant in New Albany could be delayed beyond it’s current date of 2026.
“These fabs may not come to fruition on any set timeline originally planned. They may try to kick the can down the road 3, 4, 5 years before anything is up and running.”
Albano says Intel is struggling for market share and with billions of dollars in loses, according to Reuters News, and announced 15% cut in its workforce. Albano says it’s time Intel look for new leadership or new board of directors to right the ship.
“It can’t get much worse. You might as well shake things up,” he says.
The lawsuit comes on the heels of Intel announcing its Intel Innovation, one of the company’s biggest gatherings, will be pushed back from its September date.
“It’s kind of hard to have an innovation conference when you’re not innovating and you don’t know which way to go,” Albano said.
In a statement to 10TV about the lawsuit and the future of the fab plants in Licking County, the City of New Albany said, "Intel has proven to be a strong community partner ever since the project was announced. The company has reiterated its full commitment to its Ohio One campus in New Albany, and we look forward to working with them to get the project up and running.”