- Planned Parenthood strikes ‘pro-choice’ label in favor of ‘women’s health’
- U.S. attorney warns Cuomo not to interfere with anti-corruption probes
- Investigators reach Ukraine jet crash site
- Ohio gives Obama a thumbs down; Hillary Clinton tops GOP all-stars: poll
- Jesse Ventura suggests suit not over; HarperCollins could be next
- State Department: ‘No American is proud’ of certain CIA tactics
- Drug-filled drone crash outside S.C. prison sends police on alert
- GOP to Obama: Take your ‘golf cap off’ and get down to coal country
- Hamas cleric tells Jews: ‘We will exterminate you’
- San Diego Costco, Target shoppers shocked by plane crash in parking lot
Dell paying $100 million in SEC deal
Question of the Day
WASHINGTON (AP) - Computer maker Dell Inc. is paying $100 million to settle civil charges that it used fraudulent accounting to meet Wall Street earnings targets, the government announced Thursday.
While the fine was far from the largest penalty levied by the SEC, the decision to charge a sitting chief executive of a major company and reach a seven-figure settlement with him is rare. Michael Dell is one of the most prominent figures in the technology industry, credited for revolutionizing the PC market by making the computers cheap and accessible.
The SEC said the company also failed to disclose to investors large payments it received from Intel Corp. in exchange for not using equipment made by Intel’s main rival, Advanced Micro Devices Inc. Those payments enabled Dell to meet its quarterly earnings targets. After Intel stopped the payments, Dell again misled shareholders by not disclosing the real reason its profits had dropped, the SEC said.
Michael Dell and four former executives falsely portrayed the means by which the company met earnings targets from 2002 through 2006, the SEC said in the lawsuit. Without the payments from Intel, the agency said, Dell would have missed analysts’ estimates in every quarter during that time.
The company and Michael Dell neither admitted nor denied wrongdoing. But they did agree to refrain from future violations of the securities laws. The company also agreed to improve its disclosure process by hiring an outside consultant and expanding its training of employees.
The SEC also named former Dell CEO Kevin Rollins, former Chief Financial Officer James Schneider, former regional Vice President of Finance Nicholas Dunning and former Assistant Controller Leslie Jackson in the suit.
Rollins agreed to pay a $4 million civil penalty. Schneider is paying a $3 million penalty as well as $83,096 in restitution and $38,640 in interest. Dunning is paying a $50,000 penalty.
“Accuracy and completeness are the touchstones of public company disclosure under the federal securities laws,” SEC Enforcement Director Robert Khuzami said in a statement. “Michael Dell and other senior Dell executives fell short of that standard repeatedly over many years, and today they are held accountable.”
TWT Video Picks
By Ted Cruz
Israel saves its enemies; Hamas endangers its friends
- Al Gore's climate-changers at EPA hearings foiled by cool temperatures
- Geraldo Rivera: Matt Drudge 'doing his best to stir up a civil war'
- Chicken pox outbreak puts illegal immigrant facility on lockdown
- EDITORIAL: The real Lois Lerner exposed in newly released emails
- Lois Lerner hated conservatives, new emails show
- House votes to sue President Obama over claims of presidential power
- CRUZ: A tale of two hospitals: One in Israel, one in Gaza
- NAPOLITANO: Is the president incompetent or lawless?
- 'Big Bang' star Mayim Bialik helps send bulletproof vests to IDF
- Catholic League slams Obama: 'Do Christian lives mean so little to you?'
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world