Key facts
- The proposed class action seeks unspecified damages for Intel shareholders between July 23, 2026, and October 29, 2026.
- Chief Executive Lip-Bu Tan and Chief Financial Officer David Zinsner are also named as defendants.
- Shareholders said Intel sold $23 billion of stock at $95 per share in mid-August, halfway through its third quarter.
- Intel did not immediately respond to requests for comment on Sunday, November 15, 2026.
- Intel shares are up 62% in 2026 through November 13, down from a peak of $142.35 on June 30.
Intel was sued by shareholders who accused the US chipmaker of defrauding them by concealing the impact of a prolonged slowdown in personal computer sales, according to a Reuters report published on November 15, 2026. The proposed class action was filed on Friday, November 13, 2026, in federal court in San Jose, California.
The shareholders, led by the City of Southfield Fire and Police Retirement System, said Intel was too slow to disclose how slowing PC sales and an inventory glut would weigh on revenue. They said those problems outweighed data center construction and other benefits tied to the artificial intelligence boom.
The lawsuit also claims Intel had the motive and opportunity to defraud by raising capital in mid-August, halfway through its third quarter, when it sold $23 billion of stock at $95 per share. The sale came as Intel looked to build out its chip contract manufacturing business, a key part of Chief Executive Lip-Bu Tan's strategy.
Intel shares fell 28.6% on October 30, 2026, wiping out about $140 billion of market value, one day after the Santa Clara, California-based 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. "We need to address these challenges with urgency," Tan added.
The lawsuit seeks unspecified damages for Intel shareholders between July 23, 2026, and October 29, 2026. Tan and Chief Financial Officer David Zinsner are also defendants. Intel did not immediately respond to requests for comment on Sunday, November 15, 2026. Intel shares closed at $59.66 on November 13, 2026, and are up 62% in 2026 through that date, though they have slid from a peak of $142.35 on June 30.