“Investors have filed a lawsuit against Dell Inc., accusing the computer maker of improperly accounting for hundreds of millions of dollars in payments from long-time partner Intel Corp., an attorney for the plaintiffs said on Friday,” Reuters reports.
Reuters reports, “The lawsuit accuses Dell of artificially inflating profits ‘by secretly receiving approximately $250 million a quarter in likely illegal rebate kickbacks payments’ from Intel in return for an exclusive deal to purchase Intel’s microprocessors, class-action lawyer William Lerach told Reuters.”
“The plaintiffs also contend that the company and its executives participated in a ‘widespread, long-running scheme to defraud’ shareholders and inflate Dell’s stock price, said Lerach, head of law firm Lerach Coughlin Stoia Geller Rudman & Robbins LLP in San Diego,” Reuters reports.
Reuters reports, “The suit was filed on Wednesday in U.S. District Court in Austin, Texas, by the union-backed Amalgamated Bank’s LongView Funds and the UK-based West Midlands Pension Fund, Lerach said. It seeks class-action status on behalf of other investors. A Dell spokesman said the company does not comment on pending litigation. The company has not seen the lawsuit, he added.”
Full article here.
MacDailyNews Take: Dell’s future is so bright, we’ve gotta wear night vision goggles.
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