Biz Brief: Dell Settles With SEC, Restates First Quarter
Dell (DELL) announced Thursday that it will record a $100 million liability for a potential settlement with the Securities and Exchange Commission over the agency's investigation into the computer maker's accounting practices and relationship with Intel (INTC), the chipmaker. As a result of setting aside the potential SEC payout, the company is revising its first-quarter results.
But more importantly, the settlement deal that Dell and the SEC are currently discussing would come with civil and negligence-based fraud charges. According to Dell's statement Thursday:
The settlement would involve a civil injunctive action against the company for alleged violations of certain federal securities laws, including the antifraud provisions of federal securities laws, relating to certain accounting and financial reporting matters. The settlement would also include negligence-based fraud charges, as well as other non-fraud-based charges, relating to the company's disclosures and alleged omissions prior to Fiscal 2008 regarding certain aspects of its commercial relationship with Intel Corp.
Read more from DailyFinance about Dell Sees $100 Million Settlement, Fraud Allegations for CEO.
