Intel sued by shareholders following 29% stock plunge
INTC•Shareholders sued Intel, alleging it concealed how slowing PC sales and excess inventory would affect revenue before its stock fell 28.6% in one day. The proposed class action seeks unspecified damages for shareholders from July 23 through October 29, 2026.
1. Shareholders file suit
A proposed class action filed in federal court in San Jose, California, accuses Intel of defrauding shareholders by delaying disclosure of the impact of slowing PC sales and an inventory glut. The suit, led by the City of Southfield Fire and Police Retirement System, also names Chief Executive Lip-Bu Tan and Chief Financial Officer David Zinsner as defendants.
2. Alleged delayed disclosure
The shareholders allege that Intel’s PC sales problems and excess inventory outweighed benefits tied to data center construction and the artificial intelligence boom. They say Intel had motive and opportunity to defraud by selling $23 billion of stock at $95 per share in mid-August, halfway through what they called a “disastrous” third quarter.
3. Stock falls after forecast
Intel shares fell 28.6% on October 30, wiping out about $140 billion in market value, after the company projected lower-than-expected fourth-quarter revenue and profit and forecast a prolonged slowdown in PC sales. Tan told analysts he was disappointed by manufacturing supply shortages, an “unprecedented memory crunch,” and resulting softness in PCs.
