Business / Technology

Intel Corp. is paying $6.5 million as part of a deal to terminate an antitrust lawsuit filed against the chip-maker by the New York attorney general's office.

Intel said Thursday that it is not admitting any violation of the law or that the allegations in the complaint are true. It said the agreement does not call for any changes to the way it does business.

The payment is intended to cover some of the costs incurred by the attorney general's office, which filed the lawsuit in 2009.

"We have always said that Intel's business practices are lawful, pro-competitive and beneficial to consumers, and we are pleased this matter has been resolved," Doug Melamed, Intel's senior vice president and general counsel, said in a statement.

The suit alleged that Intel, based in Santa Clara, paid billions in kickbacks to computer makers so that it could dominate the microprocessor market, and that it retaliated against manufacturers who did business with competitors.

Last year, a federal judge in Delaware dismissed several claims against Intel in the New York attorney general's case. The judge then canceled a trial planned for this month while attorneys were working out pending issues.

The attorney general's office on Thursday noted that the case was dismissed on procedural grounds, including statute of limitations, and that it still believes its claims had merit. In a statement, the office said that "in light of the court's decision (we) believe that no purpose is served by pursuing the matter further."

Intel has appealed unfavorable rulings in Europe and South Korea.

Its stock closed up 1 cent at $26.86 on Thursday.