Dell is setting aside $100 million for anti-trust settlement

Last year Intel had to pay $1.25 billion to settle anti-trust suits brought on by AMD, the EU and the FTC. Now Dell is setting aside $100 million to prepare for a possible settlement with the SEC for anti-trust allegations. The $100 million has been reduced from their fiscal 2011 year which is about 5 cents per share.

Intel offered Dell rebates for hardware if they refused to work with other CPU manufacturers. Though Dell doesn't admit to doing anything wrong they are setting the money aside because they recognize that accepting the chip rebates from Intel without reporting them to the government might not have been the best decision on their part.

The Dell financial report says "...Michael Dell, Chairman and CEO, and the SEC staff have recently commenced discussion of a settlement framework relating to Mr. Dell that would resolve allegations relating to the company’s disclosures and alleged omissions prior to Fiscal 2008 regarding certain aspects of the company’s commercial relationship with Intel Corp." Sam Nunn, director of the Dell Board said, "We are hopeful that these settlement discussions will achieve a comprehensive resolution in the near future. The independent directors of the Board have affirmed that Michael Dell will continue to lead the company as its Chairman and CEO, and he continues to have our complete confidence and support."

Investigations into wrong doings at Dell started in 2005. In response, Dell started in internal investigation that ended in 2007 which led to the restatement of certain historical financial reports and the implementation of extensive remedial measures.

Report a problem with article
Previous Story

TechSpot: OCZ Enyo USB 3.0 Portable SSD Review

Next Story

Windows Phone 7 to get Flash "within months" of release


Commenting is disabled on this article.

I've known about this off and on for years, been screaming it for the same amount of time. Nice to see something happen finally.

Jaybonaut said,
Eh, I don't get this. If I had an option of suppliers and one offered a better deal, how the hell is it my fault?

It's your fault if one supplier pays you a bribe not to use the other one regardless of how competitive their pricing.

Really? I can't agree with you there. I've lost complete faith in Dell. I've been on too many projects with their servers that come out of the box with hardware failures. They took almost 2 1/2 months to get me my last laptop I purchased from them (an XPS laptop no less) due to hardware shortages. They kept missing the ship date. They kept pushing it back without notifying me. I just had to figure it out on my own. They've missed ship dates on other hardware I've ordered or had clients order then we get the hardware and its defective. No thanks. I've just about called it quits with them.

They've discussed this stuff before when Intel first got slapped on the wrist. By some law I think all companies are required to report any deals (rebates, or whatever) like what happened between Intel and Dell. Especially one as shady that occurred between those two.

They were in the wrong, but I can't blame them (Dell that is).

I think it means they didn't report to the government their business dealings which means they didnt get a piece of the pie and now theyre going to go after Dell

zagor said,
so what is the settlement exactly for?
They're estimating they're going to get sacked with a hefty fine from the SEC and they want to be ready. Strange to admit you're putting the money to the side. Almost an admission of guilt or at least wrong doing. Then again they're publicly traded so they can't exactly hide a $100MM line item on their budget.