Intel shareholders file case asking ex-CEO, CFO to return 3 years of salary
Posted: Dec 24, 2024
- Shareholders allege former Intel CEO and current co-interim CEO David Zinsner misled about financial performance of Intel's foundry unit
- Shareholders filed lawsuit for disgorgement of profits obtained by company leadership, alleging breach of fiduciary duties
- Intel failed to execute turnaround plan, Gelsinger abruptly resigned, company reported record loss
- Zinsner and Michelle Johnston Holthaus appointed as co-interim CEOs, leading company's restructuring targeting $10 billion in cost savings
- Gelsinger's plan to spin off foundry unit and produce chips for competitors was misled about financial performance
- Foundry unit reported significant losses, caused Intel shares to drop by 9.2%
- Zinsner stated that the company remains focused on becoming a "world-class foundry" despite legal issues
- Intel declined to comment on the suit from shareholders
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - The sentiment is primarily negative with frustration about Intel's management and strategy, but there are a few mixed views considering options like buying the dip or investing in alternatives like NVIDIA. Summarized comments: - Filing of the lawsuit is seen as part of a larger pattern of incompetency and mismanagement at Intel - Concerns about the future following the firing of the ex-CEO, Pat Gelsinger, who was believed to be integral for the company's strategic plans - Company struggles are perceived as longstanding, with historical complacency leading to missed opportunities - Frustration expressed by shareholders holding Intel stock - Discussion around the drama surrounding Intel on platforms like Reddit - Some comments suggest considering buying the dip or puts, while others are skeptical about investing further in Intel Stock tickers discussed: $INTC
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