What just happened? Intel has received a rare piece of good news. A shareholder lawsuit filed last year over accusations it fraudulently concealed problems in its foundry business has been dismissed. However, the company continues to face other similar lawsuits related to its foundry operations. The lawsuit accused Intel of misleading investors by taking too long to report a $7 billion operational loss in fiscal 2023 related to its foundry business.Intel had reported its contracted manufacturing division as a segment separate from its internal manufacturing operations, which create its own products. But that changed last year following a corporate restructure in which both the internal and external foundry operations were consolidated into a single unit called Intel Foundry, which showed a $7 billion loss.That amount came as a shock to shareholders, especially as Intel and former CEO Pat Gelsinger had repeatedly boasted about the growing interest in the business while inflating the company's share price, leading to a lawsuit alleging the company fraudulently concealed the problems.However, US District Judge Trina Thompson dismissed the claims. Thompson said shareholders incorrectly attributed the $7 billion loss to the Intel Foundry Services business unit, and were not misled into believing the unit's reported results included results for the entire Internal Foundry Model.Former Intel CEO Pat GelsingerThe judge added that the comments Gelsinger made about Intel enjoying significant traction and growing demand for its foundry offerings were not misleading, as they referred to customers' and contracts rather than the declining overall revenue. // Related Stories"There are no allegations that indicate defendants led investors to believe that the IFS reporting results for fiscal year 2023 included results for the entire internal foundry model," Thompson wrote. "The complaint itself misleadingly conflates IFS and the internal foundry."In August 2024, Intel reported a $1.61 billion net loss and lowered its forecast for the quarter, leading Gelsinger to call the Q2 financial performance "disappointing." Shares fell 26% in a single day to their lowest point since 2013, marking Intel's worst trading day since 1974 and wiping $32 billion off its market value. The company said it would lay off 15,000 employees and suspend its dividend to help save $10 billion in 2025.Thompson said the plaintiffs have the opportunity to file an amended complaint. Intel is also facing several other lawsuits related to its foundry business.