Feeds

Dell sued for chip kickbacks

Class action case and management cuts

Designing a Defense for Mobile Applications

Dell shareholders are suing the computer maker over allegations it took kickbacks from Intel to maintain an exclusive relationship with the chipmaker. The class action suit alleges Dell's profits were inflated by as much as $800m a year by the payments. The money was paid as long as Dell rejected chips from rival supplier AMD. Dell only started offering machines with AMD processors last year.

The case, filed in Austin, Texas, alleges the computer maker failed to properly account for the money and defrauded shareholders. The filing was made Wednesday last week - the same day Dell announced Kevin Rollins would be replaced as CEO by Michael Dell.

The filing was made by law firm Lerach, Coughlin, Stoia, Geller, Rudman & Robbins LLP acting for two institutional investors.

One of the lawyers involved told AP that they do not allege that the payments were illegal, just incorrectly accounted for. The suit names 16 current and former Dell staff as well as accountancy firm PriceWaterhouseCoopers and Intel.

Dell is also under investigation by the Securities and Exchange Commission, and faces other suits over allegations that it knowingly sold faulty laptops.

In other news, returning CEO Michael Dell sent an email to staff on Friday which said the company would not be paying bonuses this year - but there would be some discretionary awards and pay rises. He said the last year had seen great efforts, but not great results, and blamed bureaucracy for the problems.

He said the company would cut the number of top managers from 20 to 12 and would not be hiring a chief operating officer.

The company's European boss Paul Bell is taking over the US business.

More from the Austin American Statesman here. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.