Intel (INTC.US) was sued by shareholders after daily earnings evaporated over $32 billion: concealment of corporate issues.

Intel (INTC.US) was hit with a class action lawsuit on Wednesday, alleging that the company concealed problems that led to its weak performance, layoffs and suspension of dividends, causing a stock plunge of more than $32bn in a single day after it released its latest earnings.

The lawsuit, which names Intel, Intel CEO Patrick Gelsinger and CFO David Zinsner as defendants, alleges that Intel’s shareholders were blindsided by its disclosure on August 1 that its foundry business was “stumbling,” with tens of billions of dollars in additional costs as revenue declined. The shareholders allege that Intel’s major misrepresentations or misleading statements about its business and manufacturing capabilities inflated the company’s stock price between January 25 and August 1.

Intel did not comment.

Intel’s earnings report last week showed that the company’s second-quarter revenue fell 1% year-over-year to $12.83bn, well below the consensus estimate of $13.4bn. Facing huge losses, Intel announced it would cut 15,000 jobs and suspend its dividend from the fourth quarter of this year, the first time the company has suspended its dividend in its 32-year history. The company also announced that it would reduce its total capital spending to $25-27bn in 2024, down 20% from the previous year, and further reduce it to $20-23bn in 2025.

Notably, Intel’s guidance was even more disappointing. The company expects revenue of $12.5bn-$13.5bn in the third quarter, far below the consensus estimate of $14.37bn. It expects gross margin of 34.5%, also far below the consensus estimate of 44.1%.

Intel’s stock plunged 26% on August 2, the day after it released its earnings. The stock closed down 3.6% on Wednesday at $18.99, down 34.6% from its earnings release.