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Berman DeValerio Announces Settlement of Derivative Lawsuit Against Intel Corp.

U.S. District Court Judge Joseph J. Farnan, Jr. issued an opinion detailing his reasoning today. The court-approved governance changes are designed to minimize opportunities for the types of anticompetitive behavior that spawned private litigation, regulatory actions and large fines against the company. Berman DeValerio acted as co-lead counsel on behalf of institutional and individual investors.

Last year, Intel paid $1.25 billion to Advanced Micro Devices to settle antitrust charges that it tried to shut its rival out of computer markets. That payment came on the heels of a $1.45 billion fine by the European Commission for monopolistic practices.

In the shareholder derivative suit approved this week, plaintiffs alleged that the company's directors breached their fiduciary duties to the company by allowing Intel to engage in anticompetitive behavior for over a decade.

The settlement agreement provides a substantial benefit to the company in the form of more than 40 distinct corporate governance measures designed to help Intel detect and prevent potential or actual violations of domestic or global competition law and company policy. Among many other things, the Settlement requires that (1) antitrust compliance is overseen by a strong and impartial "Compliance Committee" consisting of three independent directors and (2) Intel 's antitrust compliance policies, procedures and programs will, in all material aspects, be intended to conform with the relevant provisions of the United States Federal Sentencing Guidelines. To view a copy of the court's memorandum opinion, click here.

"Intel is the largest chip maker in the world, and they have been accused of using this status to stifle their competition and to unfairly pressure customers into doing business with them," said Jeffrey C. Block, a Berman DeValerio partner who oversaw the case. "This settlement establishes protocols and procedures that we believe will provide Intel with first class governance reforms and oversight which will strengthen the company today and beyond and allow it to avoid future accusations of anti-trust wrongdoing."

Berman DeValerio is a national law firm representing plaintiffs in lawsuits against corporate wrongdoers, chiefly for violations of securities and antitrust laws. The firm has 39 lawyers in Boston, San Francisco and Palm Beach Gardens, Florida.

Berman DeValerio
Jason Douse, 800-516-9926
jdouse@bermandevalerio.com