Dell $100 Million - Dell Hit With Multi-Million Civil Charges

By: Jennifer Hong
Staff Writer
Published: Jul 23, 2021

Computer giant Dell hit with $100 million civil penalties under a settlement with the SEC.

Dell $100 million civil court charges. Dell used fraudulent payments from Intel to pump up their profits. Dell made the payments in an effort to meet Wall Street targets over five years.

The company will now pay $100 million to settle their civil court charges. In addition, company Chairman and CEO Michael Dell agreed to pay a separate $4 million in civil penalty under the settlement with the Securities and Exchange Commission. The agency had been investigating the technology company for five years.

Michael Dell, former CEO Kevin Rollins and former Chief Financial Officer James Schneider were all accused of playing a role in the company's alleged violations of disclosure laws. Schneider and two other former executives were charged with fraudulent accounting. According to the SEC, Dell also failed to disclose large payments to investors that it received from Intel Corp. in exchange for not using central processing units made by Advanced Micro Devices Inc, the companies main rival.

The payments received from Intel enabled Dell to satisfy its quarterly earning targets. Additionally, Dell misled share holder once again when they did not disclose the reason its profits had dropped when Intel stopped making payments to them. Dell is the world's third-largest PC maker, their net income was $441 million in its fiscal first quarter this year.

The company, Michael Dell, Rollins and Schneider falsely portrayed the means by which the company met or surpassed earning targets from 2001 through 2006, the SEC stated in the civil lawsuit. Without Intel's payments, Dell would not have satisfied their quarterly earning targets during the years in question.

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