According to a press release dated July 30, 2003, a federal judge in California has dismissed a shareholder class-action suit against Intel Corp. U.S. District Judge Jeremy Fogel ruled the suit failed to establish Intel had intended to deceive or defraud investors in making statements about its revenue and product plans in the summer of 2000. Because the plaintiffs already had one chance to amend their complaint to meet similar objections, the judge ruled they cannot re-file another amended complaint. The suit was led by the Hawaii Reinforcing Iron Workers Pension Trust Fund.

The original complaint charges Intel with violations of the Securities Exchange Act of 1934. The complaint alleges that as a result of Intel's extraordinarily bullish statements and assurances during 7/00-8/00, on 8/28/00, Intel's stock hit its all-time high of $75-13/16. But the positive statements about the strong demand for Intel's products, Intel's improved manufacturing processes and efficiencies, the successful development and introduction of its Pentium III microprocessor, the successful development of the Pentium IV, Itanium and Timna chips and the outlook for Intel's 3rdQ 00 results, issued from 7/18-19/00 through the Intel Developer Forum, were false. On 9/29/00, Intel admitted it was canceling its Timna chip (due to technical development problems and a lack of market demand) and told customers it was delaying shipment of its Pentium IV and Itanium chips due to design and development problems. Intel's stock dropped, falling to as low as $35-3/8. Thus, in just over five weeks, Intel's stock dropped from its all-time high of $75-13/16 on 8/28, to its lowest price in years, $35-3/8, a market cap loss of $271 billion, wiping out 50% of Intel's stock value.