Intel (INTC) faces a lawsuit alleging the company avoided $1 billion in losses by making stock sales in Mobileye Global (MBLY) based on insider information related to its majority stake, Bloomberg reported Tuesday, citing an unsealed lawsuit.
Mobileye investors are suing Intel, along with current and former board members, the report said.
Intel allegedly knew Mobileye inflated its market value when the chipmaker sold shares worth around $1.6 billion in June 2023, the report said, citing the suit. Mobileye allegedly had boosted short-term sales at the expense of future profits by locking in customers for inventory orders, the report said.
The lawsuit was filed under seal in Delaware's Chancery Court on May 6, the report said.
Intel and Mobileye didn't immediately reply to requests for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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