updated 07:45 pm EDT, Thu July 22, 2010
Michael Dell pays $4 million fine
Confirming earlier reports, Dell has agreed to settle charges from the Securities and Exchange Commission over accusations of fraudulent accounting practices. The company will pay the SEC $100 million, while founder and CEO Michael Dell faces a separate fine totaling $4 million.
The SEC accused Dell of misleading auditors and fabricating financial information, which allowed the company to exaggerate its performance. The fraudulent practices allegedly spanned from 2002 to 2006, however the company was later forced to restate earnings for the four years in question.
"Accuracy and completeness are the touchstones of public company disclosure under the federal securities laws," said SEC enforcement director Robert Khuzami. "Michael Dell and other senior Dell executives fell short of that standard repeatedly over many years, and today they are held accountable." [via NYT]