Dell settles with SEC on fraud accusations
updated 04:35 pm EDT, Thu October 14, 2010
Dell settlement approved by federal judge
Computer maker Dell has received the permission to settle accounting-fraud claims brought against it by the US Securities and Exchange Commission from a judge by paying a $100 million fine. US District Judge Richard Leon approved the settlement in Washington on Wednesday. The agreement lets Michael Dell remain CEO after paying a $4 million fine with personal funds.
Michael Dell appeared in court and told Leon he wasn't involved with the company' settlement, hence he avoided a potential conflict of interest. In its settlement proposal, Dell the company requested to retain Michael Dell as CEO.
All negotiations were done through directors, as appropriate, Michael Dell said. Dell didn’t admit or deny wrongdoing in the settlement and said it has made efforts to improve its accounting and disclosures, the CEO said.
The company allegedly failed to tell investors that it received so-called "exclusivity payments" from Intel for boycotting AMD chips for its products. Intel settled with AMD by paying $1.25 billion to its competitor while an agreement with the FTC should ensure a similar case doesn't happen again. [via Bloomberg]
