Пет Гелсінгер / Intel
Intel shareholders from LR Trust are suing former and current Intel executives over the management policy of Intel Foundry and are aiming to reclaim hundreds of millions of dollars.
The lawsuit accuses Pat Gelsinger, former CEO of Intel, and David Zinsner, interim co-CEO and CFO, of mismanagement, misleading disclosures about their compensations and the company’s profits. Among the listed demands, the plaintiff seeks reimbursement of Gelsinger’s full salary amounting to $207 million over his tenure in 2021, 2022, and 2023, which would then be returned to Intel.
The plaintiff claims that Pat Gelsinger and David Zinsner failed to disclose the poor performance of the Intel Foundry unit. Intel did not reveal critical risks, and executives and board members made misleading statements about the growth potential of Intel Foundry Services (IFS), hiding significant operational losses and a decline in internal revenue.
LR Trust asserts that Intel misrepresented the financial condition and performance results of IFS and issued substantially false and misleading public statements about cost savings, operational efficiency, and profitability. The production unit of Intel lost $7 billion in 2023 alone, and losses increased in 2024 as the company ramped up spending on new factories.
The lawsuit seeks compensation for the likely damage inflicted on the company itself. If successful, the damages will be paid to Intel, not LR Trust or individual shareholders, and will improve the financial situation of the company. A potential indirect benefit for LR Trust is an improvement resulting from the payments in its position as a long-term shareholder of Intel.
The lawsuit states that Pat Gelsinger and David Zinsner received substantial compensation, including salaries, stock awards, and bonuses, during the period of alleged mismanagement and financial misconduct. Consequently, the plaintiffs demand compensation for damages, as well as legal costs.
Source: Tom’s Hardware