Monday, February 19th 2007

Computer Maker Dell Contends with Investor Lawsuit Over Dealings with Intel.

The lawsuit, brought about by investors, accuses computer maker Dell Inc. of "secretly receiving approximately $250 million a quarter in likely illegal kickbacks payments" from its long time partner Intel. This money was supposedly received in return for an exclusive purchase agreement for Intel's microprocessors. Chip maker Intel claims that the accusations are just a renewal of similar previous complaints by chip maker AMD (Advanced Micro Devices). Dell would not comment on the lawsuit. In the past Dell has only used processors manufactured by Intel, but just last year began buying processors from Intel's competition AMD.

In addition, Dell is also currently under investigation by the U.S. Securities and Exchange Commission, and the U.S. Justice Dept. for its accounting practices.

Source: CNNMoney
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7 Comments on Computer Maker Dell Contends with Investor Lawsuit Over Dealings with Intel.

#1
XooM
yes... c'mon... rape dell a hard one...
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#2
tkpenalty
^x2, they were getting the parts at sub-OEM prices already, now they are backstabbing them by using AMD.
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#4
pt
not a suicide-bomber
at least they use AMD now, and :nutkick: INTEL
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#5
WarEagleAU
Bird of Prey
This doesnt look good for poor poor Michael. Dell used to be a great pc maker (for home users, not us power folks) but now look at them. Michael is in some deep dookie.
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#6
Thermopylae_480
Yes, it is important to realize that he does have quite the hand full. He didn't return as CEO until last month I believe, so the majority of the companies current problems aren't necessarily directly his fault. It will be interesting to see how he handles his companies current plight.
Posted on Reply
#7
Pinchy
by: WarEagleAU
Dell used to be a great pc maker (for home users, not us power folks)
Thats so true

The only reason we dont like their pc's is because we like to upgrade/tweak :D
Posted on Reply