Fraud Suit Against Intel Is Dismissed

A class-action lawsuit that alleged Intel Corp. executives made false statements to inflate the semiconductor giant’s stock price has been dismissed.

U.S. District Judge Jeremy Fogel granted Intel’s motion to dismiss the case, saying plaintiffs failed to show that company executives knowingly misled investors about Intel products or revenue in the third quarter of 2000.

In the suit filed in San Jose, the investors claimed Intel made bullish statements in the summer of 2000 that drove the firm’s stock to an all-time high of more than $75 a share. The run-up was quickly followed by news that Intel was canceling one chip line and delaying the launch of its Pentium 4 and Itanium processors. Intel’s stock dropped to about $35.

Shares of Intel closed up 14 cents at $24.90 on Nasdaq.

From Associated Press