updated 09:00 am EDT, Fri March 30, 2007
Dell Bookkeeping Trouble
Dell late yesterday admitted that there had been mismanagement of its finances in recent years, according to a statement by the company. An internal investigation had found "accounting errors, evidence of misconduct, and deficiencies in the financial control environment," the terse message said.
Though the company doesn't expect criminal charges to follow, Dell management has labeled the problem as "serious" and could be forced to restate its earnings, potentially revealing a considerably weaker company. The Texas system builder has struggled with poor sales that prompted a major management reshuffling, including the return of Michael Dell to the CEO spot.