Shareholders sued Intel for transferring ten percent of the company’s shares to the U.S. government at Trump’s insistence

Intel Deal with the U.S. Government: Who and Why It Is Disputed

CEO of Intel, Lip‑Bu Tan, expressed concerns to President Donald Trump at the beginning of 2024, but after a personal meeting American authorities secured almost ten percent of the company’s shares for the state. Now some minority investors are contesting the deal.

Who filed the lawsuit and what is the reason?

Minority shareholder Richard Paisner sued to annul the agreement between Intel and the U.S. government. In his statement he claims that the company’s management was “coerced” by American authorities before signing the agreement and sold shares worth nearly $11 billion without substantial justification—only under the threat of “attacks from Donald Trump.” Paisner believes the deal resulted in a loss of control over shareholder interests.

Background

Before meeting Trump, Lip‑Bu Tan spent several hours surrounded by consultants who helped him prepare for the negotiation process. At the time of the deal, Intel had already received $2.2 billion from the government; the remaining $8.9 billion were promised as part of subsidies under the “CHIPS Act.” In exchange for transferring 10% of shares, authorities pledged to pay these funds later.

Parties and Allegations

Paisner points out that management’s decision was motivated only by a desire to preserve Tan’s job, not investors’ interests. The law firm Skadden, which simultaneously represented Intel and the U.S. Department of Commerce in structuring the deal, also faced criticism for violating shareholder rights (though it officially is not named as a defendant).

The lawsuit accuses:

- The U.S. Department of Commerce and its head Howard Lutnick;
- Former Intel board chair Frank Yirri.

Thus, the dispute over the deal reflects a conflict between government technology development programs and the protection of minority shareholders’ rights in a large tech company.