Anti-Defamation League suing Intel, its first-ever discrimination case against major American company

• The Anti-Defamation League has joined a lawsuit alleging a hostile workplace, discrimination and wrongful termination at Intel brought by a former Israeli employee who alleges the company supported two executives who openly posted antisemitic propaganda tied to the Israel-Gaza war.
• It is the first time the ADL has sued a major American company in its over 100-year history.
• “It is incumbent on us to use every tool available, including the courts, when necessary ... including in the workplace,” said ADL CEO Jonathan Greenblatt. 

For the first time in its century-plus history, the Anti-Defamation League is suing a Fortune 500 company, Intel, joining a case brought by the law firm of Wigdor on behalf of a former Israeli employee of the technology firm. 

The lawsuit, originally filed in August, claims Intel failed to respond to public antisemitism posted by executives and flagged by an Israeli employee (who later was moved into a position reporting to one of the executives), and ultimately retaliated against him by terminating his employment. 

The employee "wasn't just discriminated against, he was targeted [and] victimized," ADL CEO Jonathan Greenblatt said in an interview on CNBC's "Squawk Box" on Thursday in explaining ADL's decision to sue Intel.

An Intel spokeswoman said the company has a longstanding culture of diversity and inclusion and does not tolerate hate speech of any kind, pointing to its code of conduct. She added that Intel does not specifically comment on ongoing litigation.  

Intel has operated in Israel for 50 years, where it has invested more than $50 billion, and remains one of Israel's largest private employers with more than 11,700 Israeli employees. The company estimated $8.7 billion in exports from its Intel operations, accounting for 5.5% of Israel's high-tech exports and 1.75% of the country's GDP, in 2022.

In June, Intel suspended $15 billion expansion plans for a major plant in Israel, but said it was fully committed to the region and the war was not a factor. Intel is facing significant financial pressures and scrutiny from investors, and recently suffered its worst one-day decline on Wall Street in over 50 years after weak earnings. The company is currently undergoing a major restructuring to shore up its balance sheet, slashing capital spending and laying off more than 15% of its employees as part of a $10 billion cost-reduction plan.

Rise in antisemitism at work, in business world

Incidents of antisemitism at work are part of broader social and political conflict across the nation, according to the ADL, which found that in 2023, there was a 140% increase in antisemitic harrassment, vandalism, and assault cases in the U.S.

"We are dealing with an increasingly intensifying environment for antisemitism," Greenblatt said during the CNBC interview. "We know that things have exploded since 10-7," he said, a reference to the date of the invasion of Israel by Hamas forces.

The incidents tracked by the ADL across Jewish institutions, colleges, and K-12 schools, among other locations, saw a sharp rise over the final three months of 2023. The ADL also counted 255 Israel-related incidents at businesses specifically in 2023, many at local establishments, in which Jewish customers and employees experienced antisemitic harassment.

Business establishments were third behind public spaces and college campuses among the frequent location type for antisemitic incidents recorded at anti-Israel protests. Shopping malls, businesses that protesters alleged manufacture weapons for the Israeli military and businesses which are targeted by the Boycott, Divestment and Sanctions (BDS) movement, were among targets. 

Greenblatt referred to the Intel suit as "a bold step" and said during the CNBC interview that the rise in antisemitism has reached the highest level of corporations. "We've seen bigotry in boardrooms and in businesses," he said. "People think it's just political speech if you target or harass people because of their Jewish identity or faith and that's wrong, even in a corporate environment like Intel," he added.

Asked later by CNBC if the Intel suit reflected the start of a broader legal strategy that will be pursued against other corporations, Greenblatt said via email, "It is incumbent on us to use every tool available, including the courts, when necessary, against the scourge of antisemitism and hate wherever and whenever we see it, including in the workplace. When employers do not meet their legal obligations in protecting their Jewish employees, ADL will not hesitate to act."

The former Israeli employee also recently sent an open letter to Intel's board of directors about his complaint.

The surge in antisemitism and protests against the Israel-Gaza war have roiled U.S. daily life, from college campuses to internal dissent within major U.S. companies, and it is the latest example of a divisive social and political issue spilling over into the workplace and adding to the pressures faced by corporate executives in recent years. In April, Google fired 28 employees after protests tied to its sale of technology to Israel. Google also fired an employee last spring who interrupted a speech by an Israeli executive.

"CEOs have my sympathies," Greenblatt said. "I have hundred and hundreds of people who work for me, people of different political views, and ethnic views, and if you can't just show up and do your job and create shareholder value, then maybe you don't belong," he said. "I think we've got to recognize this is an intense environment, but we need to keep our people focused," he added. "People have their views but they don't belong in the cubicle or in the meeting room where you are focused on satisfying customers."