The 10 Biggest Intel Lawsuits in Company History
The Intel Corporation is a tech business that is known throughout the world. It designs computer components and manufactures and sells them along with related products. The company is best known for its microprocessors, chipsets, and network and communication systems. it also offers systems management software and multiple other products related to computers, software, digital imaging, and networking. Although Intel has a solid reputation for the quality of its products and services, it’s had its share of legal issues. Our research showed multiple lawsuits filed against the tech giant. Here are the ten biggest Intel lawsuits in company history.
10. Intel settles lawsuit for employment discrimination Settlement amount: $3.5 million
The United States Department of Labor, confirms that Intel was accused of engaging in employment-related offenses in 2016 and 2017. Investigations by the Department of Labor discovered substantiation of the claims that Intel’s practice created disparities in wage and hour practices. The DOL’s full inspection of Intel’s records showed evidence of disparities in wage and compensation with discriminatory acts based on race and gender. The Office of Federal contract Compliance Programs participated in the investigation in the civil suit filed in the state of California. Intel performed its internal audit and presented the data with an explanation of each claim in question. Intel denied any wrongdoing and attempted to justify its actions when paying people of color and women lower compensation than others on the payroll, performing similar jobs. The Department of Labor wasn’t buying their version of the facts, found Intel to be out of compliance with state and federal wage laws, and held them liable for damages. . The penalty assessed for the violations was $3.5 million. The decision was made on September 30, 2019, with Intel paying the penalty to resolve the case. This was one of many lawsuits filed for discriminatory practices in worker compensation, based on gender and race. It is also one of the least expensive. Others cost Intel even more.
9. Asalati v. Intel Corporation Settlement amount: $5 million
Intel was accused of wage and hour violations in private litigation filed in the Santa Clara County Superior Court. The class-action lawsuit claimed that Intel violated wage and hour laws through a series of ten offenses. It failed to pay workers for all hours worked, it failed to pay overtime wages, it failed to provide workers with rest and meal breaks, and it failed to reimburse employees for required business expenses. Further, the plaintiff claimed that Intel did not maintain proper records, nor did it provide itemized and accurate wage statements. It was also accused of engaging in waiting time penalties, unfair business practices, and violations of California labor codes. Intel denied any liabilities arising from the claims made. The case was settled on October 29, 2018, requiring Intel to pay a penalty of $5 million.
8. Intel settles with Department of Labor Settlement amount: $5 million
The United States Department of Labor Office of Federal Contract Compliance Programs investigated allegations by employees that the company conducted discriminatory acts and practices against them. The claims alleged that Hispanic American, African American, and female workers were paid less than workers who were white males. The charges included a series of systemic pay discrimination at Intel’s locations in Oregon, California, and Arizona. Intel agreed to settle the case by allocating pay equity adjustments to engineers in the US working on its teams, over the next five years, of a minimum of $1,500,000. Additionally, Intel agreed to pay workers back interest of $3.5 million. The case didn’t go to full litigation as Intel entered into an Early Resolution Agreement to come into compliance. Intel has been through enough lawsuits to understand that there are times when it is less expensive to settle rather than fight allegations. This was a case that was a victory for workers who had long been subjected to systemic discrimination in pay rates.
7. Intel settles high-tech antitrust case Settlement amount: $415 million
Hightech Employee Lawsuit reports that Intel was one of the many tech companies named in antitrust litigation. Workers accused Intel, Lucasfilm, Ltd., Intuit, Apple, Adobe Systems Incorporated, Google Inc, Apple Inc, and Pixar of engaging in behaviors together that violated antitrust laws. Technical employees working for Intel from Intel and others joined in a collective lawsuit. The court entered its order of approval on the $415 million settlement on September 2, 2015, with finalization on October 5, 2015. intel has been involved with numerous antitrust lawsuits. Although they’ve lost some and ended up paying millions and even billions in fines and restitution, Intel has won some of the cases brought against it. It’s also been successful in having a few cases overturned in appeals courts. They’re getting a sense of when it’s wise to appeal and when it’s less expensive to pay the settlement amount to avoid incurring further legal expenses.
6. Intel settles Intergraph lawsuit Settlement amount: $225 million
Computerworld reports that Intel was involved in a patent dispute with Intergraph Corporation. Intel and Intergraph had been involved in a patent dispute for several years. The case was filed in 2001 with Intergraph suing Intell, claiming infringement on two patents in the parallel computing technology classification. A court in Texas ruled in favor of Intergraph. Intel appealed the decision, and a lower court heard the case. Intel paid $225 million to settle the case and put it to rest. The agreement resulted in Intergraph agreeing not to sue intel for similar patent infringement allegations on its motherboard chipsets and microprocessors. The case was settled in March 2004. Intel has a long history of conducting beneficial negotiations with its competitors and adversaries. It’s been in countless lawsuits over patent infringement. Paying $225 million may seem like a large amount, but compared to some of the other cases against the tech giant, it’s a fraction of the biggest lawsuit settlement Intel has paid.
5. Intel settles lawsuit with AMD Settlement amount: $1.25 billion
CNet confirms that Advanced Micro Devices filed a lawsuit against Intel for allegations of antitrust violations. The two companies got together to mediate their grievances and create a long list of prohibitions to prevent further violations along with the renewal of a patent cross-license agreement. The two companies settled with an agreement for Intel to pay AMD 1.25 billion in addition to the other items on the list. The settlement was part of an amicable settlement that benefited both parties as continued litigation would be expensive and potentially damaging to Intel. The list of restrictions for Intel includes avoiding inducing customers to p purchase all of their microprocessors from Intel, inducing consumers to delay purchases of AMD’s microprocessors, and many other actions that take the business potential for competition from AMD.
4. The European Commission issues statement of guilt to Intel on antitrust violations Settlement amount: $1.44 billion
Intel was accused of actions that cause harm to millions of its customers in Europe. The European Commission investigated Intel for committing antitrust violations of the PC microprocessor market. They found Intel guilty of committing abuses including setting out AMD, Intel’s rival, and paying rebates to system manufacturers and to Media Market to close AMD out. The practice of striking agreements with other companies to shut out the competition is a violation of antitrust laws and it can result in some stiff penalties as we see in the case against Intel. The European Commission found Intel guilty and fined them $1.44 billion in 2009. Intel appealed the ruling. in a European court. This was one of the largest settlements of its kind dealing with antitrust violations. Intel admitted no wrongdoing and fought back against the fine.
3. Nvidia countersues Intel Settlement amount: $1.5 billion
Nvidia is yet another tech company to file formal legal claims against Intel for antitrust behaviors. The history behind the suit goes back to February of 2009 when Intel sued Nvidia, claiming the tech company was not licensed to make chipsets listed as Intel processor compatible. Nvidia filed a countersuit, claiming that the license it held was sufficient. Nvidia further alleged that Intel was trying to shut them out of the chipset market in an attempt to corner the market which borders on antitrust violations. Nvidia had a strong case against Intel which appeared to be the aggressor trying to edge the competition out of the business. The tables turned on Intel quickly after Nvidia filed its countersuit. Intel has established a long track record of making moves that violate anti-competition laws. Instead of carrying the lawsuit further, and incurring millions of dollars in expenses, the two sides came together to work out their grievances against each other. They both agreed to drop their lawsuit and countersuit with Intel agreeing to pay Nvidia $1.5 billion in a patent settlement. After the case was settled, Nvidia shares went up and performed higher on the stock exchange.
2. Intel settles with the Federal Trade Commission Settlement amount: $1.5 billion (suspended)
Intel was slapped with another penalty in 2010. It happened just a year after a fine of over $1.4 billion by the European Commission. The penalties from that litigation were for antitrust behaviors. The United States Federal Trade Commission filed a lawsuit against Intel in 2010 on anti-trust violation grounds. It was around the same time that Intel settled with AMD for over a billion. It was an expensive year for Intel as its bid to rule the tech world began to crumble from inappropriate and illegal strategies employed. The FTC came after Intel while they were still waiting for her about the appeal for the European Commission fine. Intel had reasons for moving ahead with a settlement in return for the FTC agreeing to drop the case. It had been a tough year and it was time to try to get back on track. The FTC penalized Intel the amount of $1.5 billion and a long list of requirements and prohibitions a month before the hearing was scheduled to review the case. It may have been more advantageous for Intel to settle to avoid further penalties had it gone to a jury trial. The FTC accepted the settlement agreement and dropped the $1.5 billion fine, then gave its word not to push for any further fines if Intel cleaned up its act and ceased behaviors that violate antitrust laws. The FTC was aware of the billions Intel had already paid for past discretion and wasn’t trying to bankrupt the company. They were after the meaningful change and a cease that would give other tech companies a fair chance to compete in an open market without nefarious brokering and dealings on the part of Intel. They got off lucky in this case.
1. Intel loses patent infringement lawsuit Settlement amount: $2.2 billion
Fortune reports that Intel faced accusations of patent infringement over chip-making. VLSI Technology claimed that intent committed two instances of patent infringement against them. Intel denied any wrongdoing and provided arguments against the ruling, which the jury rejected. The two patents in question had been shelved for ten years and claimed that Intel used the old patents issued in 2012 to Freescale Semiconductors Inc and in 2010 to Sigma Tel Inc . Both patents became the property of VLSI in 2019. Intel attempted to postpone the case based on the ongoing pandemic, but their request got rejected, and the case moved forward in federal court. The court ruled in favor of VLSI, ordering Intel to pay the amount of $2.2 billion to settle the lawsuit. This was the most expensive lawsuit that Intel has had to pay so far, but Intel faced lawsuits for higher amounts.
