Berman DeValerio Announces Settlement of
Derivative Lawsuit Against Intel Corp.
July 23, 2010 04:32 PM Eastern Daylight Time
BOSTON--(EON: Enhanced Online News)--Berman DeValerio (www.bermandevalerio.com) announced today
that it has secured a settlement in a derivative lawsuit against Intel Corp. whereby the company will implement a
series of corporate governance reforms. The agreement, approved by a federal court in Delaware earlier this week,
came as the U.S. Federal Trade Commission was negotiating a possible settlement with the computer chipmaker
over allegations of anticompetitive practices.
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
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,