Summary
This 8-K filing from Intel Corporation (INTC) on November 5, 2009, discloses the initiation of a lawsuit against the company by the State of New York, represented by Attorney General Andrew Cuomo. The lawsuit was filed in the U.S. District Court for the District of Delaware and alleges violations of federal antitrust laws, the New York Donnelly Act, and New York Executive Law. Specifically, the complaint claims that Intel has engaged in a worldwide pattern of illegal and exclusionary conduct to maintain its alleged monopoly in the x86 microprocessor market and to keep prices artificially high. Investors should note the potential financial and operational implications of this antitrust lawsuit. The State of New York is seeking significant remedies, including unspecified treble damages, restitution, disgorgement of profits, a permanent injunction against further alleged unlawful acts, substantial fines for each Donnelly Act violation, and attorney's fees and costs. Intel has stated its strong disagreement with these allegations and its intention to mount a vigorous defense.
Key Highlights
- 1Intel Corporation is facing an antitrust lawsuit filed by the State of New York.
- 2The lawsuit alleges violations of federal antitrust laws and New York state laws (Donnelly Act, Executive Law § 63(12)).
- 3The core allegation is Intel's use of illegal, exclusionary conduct to maintain a monopoly in the x86 microprocessor market.
- 4The lawsuit seeks unspecified treble damages, restitution, disgorgement, and injunctive relief.
- 5Fines of $1,000,000 per proven violation of the Donnelly Act are also sought.
- 6Intel strongly disputes the claims and intends to defend itself vigorously.