Securities Law Updates | New Releases/No Action Letters
July 30, 2010
SEC Charges Dell and Senior Executives with Disclosure and Accounting Fraud
SEC v. Dell Inc., Michael S. Dell, et al.
Civil Action No. 1:10-cv-01245 (D.D.C.), Release No. 21599, 7/22/2010
The Securities and Exchange Commission (“SEC,” or “Commission”) has charged Dell Inc. with failing to disclose material information to investors and using fraudulent accounting to make it falsely appear that the company was consistently meeting Wall Street earnings targets and reducing its operating expenses.
The SEC alleges that Dell did not disclose to investors large exclusivity payments the company received from Intel Corporation not to use central processing units (CPUs) manufactured by Intel’s main rival. It was these payments rather than the company’s management and operations that allowed Dell to meet its earnings targets. After Intel cut these payments, Dell again…
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