**Intel Wins Legal Victory as Shareholder Lawsuit Over Foundry Business Dismissed**

Intel (INTC.O) has successfully won the dismissal of a shareholder lawsuit that accused the company of fraudulently concealing problems within its foundry business. The lawsuit claimed that these undisclosed issues contributed to significant job cuts, a suspension of dividends, and a dramatic loss of over $32 billion in market value in a single day.

In a decision made public on Tuesday, U.S. District Judge Trina Thompson, based in San Francisco, rejected the allegations that Intel had delayed the disclosure of a $7 billion operating loss for fiscal 2023. This loss was tied to Intel's chipmaking operations for external customers. Intel had only revealed the loss in April 2024, when it revised its financial reporting practices.

However, Judge Thompson ruled that the shareholders had incorrectly attributed the $7 billion loss to Intel's Foundry Services business unit. According to the judge, shareholders were not misled into believing that the reported results from the unit represented the entire Internal Foundry Model, as claimed in the lawsuit.

Additionally, the judge addressed statements made by Intel's former CEO, Patrick Gelsinger, last March. Gelsinger had claimed that Intel was experiencing "significant traction" and "growing demand for our foundry offering." The lawsuit argued that these statements were misleading in light of the company's declining overall revenue. However, Thompson ruled that these comments were not deceptive, as they referred to specific customers, not to the broader financial performance of Intel's foundry business.

The legal team representing the plaintiffs did not immediately respond to requests for comment following the ruling. Intel, meanwhile, declined to offer a statement on the case. Judge Thompson also mentioned that the plaintiffs may choose to file an amended complaint if they wish.

The lawsuit centered on allegations that Intel had inflated its stock price between January 25 and August 1, 2024, before posting a $1.61 billion quarterly loss. During this period, the company also announced plans to lay off over 15,000 employees and suspend its dividend in an effort to save $10 billion by 2025. The announcement sent Intel's stock price plummeting by 26% the following day, wiping out $32 billion in market value.

Intel, based in Santa Clara, California, has been grappling with increased competition from rival chipmakers while struggling to capitalize on the rapid growth of artificial intelligence technologies.

As the case concludes, the dismissal offers a potential reprieve for the company, but the legal battle may continue if the plaintiffs choose to amend their complaint.