03:29 PM EST, 12/18/2024 (MT Newswires) -- Intel ( INTC ) executives, including former Chief Executive Pat Gelsinger, violated federal securities laws by allowing misleading statements about a manufacturing segment's reorganization, a shareholder derivative lawsuit filed in a federal court in California alleges.

The lawsuit, filed in the US District Court for the Northern District of California on Tuesday, claims Intel ( INTC ) misrepresented its transition to an internal foundry model under Intel Foundry Services in 2022, which aimed to generate profits from both external clients and internal operations.

The complaint highlights Intel's ( INTC ) significant stock declines in 2024, including a 26% drop in August following revelations of escalating losses in its foundry segment in Q2, workforce layoffs, and a dividend suspension.

The plaintiff asserts these actions caused substantial damages to the company and shareholders.

Intel ( INTC ) shares fell nearly 4% in recent trading.

Price: 19.69, Change: -0.76, Percent Change: -3.69