Dell's Intel Bias Caused By Under the Table Cash?

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Dell's Intel Bias Caused By Under the Table Cash?

Posted by Zonk on Friday February 2, 2007 @05:58AM from the that-certainly-would-explain-it dept.

swschrad writes "There's a story up on Reuters today saying Dell faces a class-action lawsuit for finagling the books to hide under-table money from Intel. The hidden cash, up to a quarter-billion dollars a quarter, is alleged to have been paid to keep competing CPUs out of Dell PCs. Dell, their accountants at PriceWaterhouse, company founder Michael Dell, and former CEO Kevin Rollins are all avoiding comment on the pending litigation."

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Only Intel? by Lockejaw · 2007-02-02 06:01 · Score: 4, Insightful

I could have sworn I've seen Dell selling machines with AMD CPUs.

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(IANAL)
Re:under the table? by nuzak · 2007-02-02 06:37 · Score: 4, Insightful

Actually, that's naked insider trading. It's more like "we're investing in a new company X, and we could send them your way as their systems vendor, that is, with our cash. So what about that purchasing deal we were talking about before?"

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Done with slashdot, done with nerds, getting a life.
Consider the source by John+Jorsett · 2007-02-02 06:45 · Score: 4, Insightful

The plaintiffs also contend that the company and its executives participated in a "widespread, long-running scheme to defraud" shareholders and inflate Dell's stock price, said Lerach, head of law firm Lerach Coughlin Stoia Geller Rudman & Robbins LLP in San Diego.
This is the firm that's made a tidy living sueing the hell out of public companies whose stock drops suddenly. Guess the stock market is doing so well that they've decided to sue for prices going in the upward direction as well. Usually the target settles out of court because winning the legal battle would cost them more. A few years back they sued a company whose stock I own. In that case the company fought them off, but it cost me and the other stockholders (in whose names Lerach was sueing, thank you so much) several million. May Lerach and his ilk rot in hell.