Bronstein, Gewirtz & Grossman LLC Announces Intel Corporation Investors May Join Class Action!

NEW YORK, NY / ACCESSWIRE / May 12, 2024 / Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, informs 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 individuals and entities that purchased or otherwise acquired Intel securities between January 25, 2024 and April 25, 2024 (including the “Class Period”) have. Such investors are encouraged to join this case by visiting the Company’s website: bgandg.com/INTC.

Case details:

According to the complaint, on October 11, 2022, Intel’s CEO announced a move to an “internal foundry” model (the “Internal Foundry” or “Foundry” model). Under the Internal Foundry Model, Intel would recognize revenue generated by 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 and stated that beginning in the first quarter of 2024, the company would separate all manufacturing services into a separate group, including Intel Foundry Services (“IFS “), manufacturing and technology development, to establish Foundry and implement a new financial reporting structure to reflect this restructuring, under which Foundry would be responsible for its own reportable profits and losses (“P&Ls”). The company highlighted the cost savings and margin improvement benefits that the Internal Foundry model would provide and the tailwind it would bring to IFS.

Next, on April 2, 2024, according to the complaint, after market close, Intel issued a press release disclosing a retrospective revision of the company’s financial results under the new foundry model reporting structure, which revealed that the foundry segment recorded an operating loss of $7 billion on sales of $18.9 billion in 2023 Foundry sales were $18.9 billion in 2023, a decrease of $8.6 billion -$ compared to 2022, and that the segment’s operating loss included a $2.1 million lower product profit due to lower internal revenues.

On this news, Intel’s stock price fell $3.61, or 8.2%, to close at $40.33 per share in unusually heavy trading on April 3, 2024.

Additionally, according to the complaint, on April 25, 2024, after market close, Intel released its first quarter 2024 financial results, with the company’s first quarter results reported under the foundry model. The results showed the company’s foundry segment fell 10% to revenue of $4.4 billion compared to the same quarter last year.

On this news, Intel’s stock price fell $3.23, or 9.2%, to close at $31.88 per share in unusually heavy trading on April 26, 2024.

The complaint alleges that throughout the Class Period, Intel made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the company failed to disclose to investors:

(1) Growth in Intel Foundry Services was not indicative of the revenue growth reportable in the Internal Foundry segment.

(2) the foundry experienced significant operating losses in 2023;

(3) that the foundry experienced a decline in product profit due to reduced internal revenue;

(4) As a result, the foundry model would not provide 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.

According to the complaint, investors suffered significant losses and damages as a result of Intel’s wrongful acts and omissions and the steep decline in the market value of the company’s securities.

What’s next?

A class action lawsuit has already been filed. If you would like to review a copy of the Complaint, you may visit the Company’s website: bgandg.com/INTC or you may contact Peretz Bronstein, Esq. turn around. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss with Intel, you have until July 2, 2024 to ask the Court to appoint you as lead plaintiff. Your ability to share in the recovery does not require that you serve as lead plaintiff.

There are no costs for you

We represent investors in class actions on a contingency fee basis. This means that we will only ask the court to reimburse us for our expenses and attorneys’ fees, usually a percentage of the total recovery, if we are successful.

Why Bronstein, Gewirtz & Grossman:

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm representing investors in securities fraud class actions and shareholder derivative litigation. Our company has recovered hundreds of millions of dollars for investors nationwide.

Lawyer advertising. Previous results do not guarantee similar results.

Contact:

Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller,
332-239-2660 | (email protected)

SOURCE: Bronstein, Gewirtz & Grossman, LLC