An Intel shareholder has filed a lawsuit against the chipmaker, alleging that the company’s leadership handed over a 10% stake in the company to the US government not because it was a good business move but to save themselves from personal attacks from President Donald Trump. The lawsuit, filed in the Delaware Court of Chancery by shareholder Richard Paisner, seeks to cancel the deal, a report by The Financial Times has claimed.The lawsuit describes the transaction as an “unlawful contract” that gave away $11 billion worth of stock in response to what it calls “extortionary threats”. According to the legal filing, the deal was struck in August 2025 after a period of intense political pressure. At the time, Trump had publicly called for Intel CEO Lip-Bu Tan to resign, questioning his connections as an investor in Chinese companies and calling him “highly conflicted”.
Shareholder says Intel board wanted to save their reputation and CEO’s job
The lawsuit claims that Tan and the Intel board were ‘cowed’ by these attacks, and out of fear for their personal reputations and Tan’s job security, the leadership allegedly made a visit to the White House. Shortly after, the U.S. government became a major owner of the company.“The deal was struck so that Tan could keep his job,” the lawsuit alleges, further alleging that the leaders were more concerned with being “free from attacks by President Trump and his supporters on social media” than doing what was best for shareholders.The lawsuit argues that Intel gave away billions in ownership “for no meaningful consideration”. The government’s 10% equity stake was funded using a mix of federal money with $2.2 billion coming from existing Chips Act grants, and $8.9 billion in federal grants that had been awarded but not yet paid out.The lawsuit also raises eyebrows over the legal teams involved. It points out that Intel’s law firm on the deal, Skadden, “simultaneously represented the Department of Commerce as a result of a similar shakedown by the Administration”.
