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Dell facing investor lawsuit over shady Intel kickbacks
Ah, Michael, look what a fine mess you've got us into this time. Sure, Dell's not the first company to get smacked with a bit of sharp interrogation regarding shady accounting practices, and it's definitely not the first to have allegedly collaborated with another outfit to benefit the group, but the Texas powerhouse is facing a lawsuit that accuses it of illegally accepted quite a bit of coinage it didn't (legally) deserve. The class-action suit claims that the firm "artificially inflated profits by secretly receiving approximately $250 million a quarter in likely illegal rebate kickbacks payments from Intel in return for an exclusive deal to purchase Intel's microprocessors," which in a nutshell, doesn't bode well for either company if proven accurate. Of course, Dell's frolicking in the fields with AMD these days too, but the plaintiffs also contend that the corporation participated in a "widespread, long-running scheme to defraud shareholders and inflate Dell's stock price." As expected, nobody on the receiving end of this is taking any time to comment, and even though Rollins recently took the easy way out of his high falutin' position, himself -- along with Dell's accounting partner PricewaterhouseCoopers -- aren't out of this hot water just yet.[Via Slashdot]
