Dell allocates $100 million to cope with SEC investigation
By Carl Bagh | June 11, 2010 11:53 PM EST
Dell has allocated $100 million to cope with the repercussions of a probe by the Securities and Exchange Commission (SEC) that has been going on since 2005. The investigation pertains to Dell's financial relations with Intel.
More recently the investigation has looked into the actions of the company's CEO Michael Dell.
The allegations concern mistakes in revenue recognition and accounting irregularities including contravention of anti-fraud provisions of securities laws. The investigation formally started in 2006. As a result, Dell had to delay reporting its earnings in November. The company began its own investigation, which was completed in 2007.
As a result of its audit, the company had to reduce its net income for the restatement period--from 2003 through 2006 and the first quarter of 2007--by between $50 million and $150 million, or 2 cents to 7 cents per share, Forbes reported in 2007.
Dell's relationship with Intel was already under scrutiny in an anti-trust lawsuit. In that case Dell was accused of reporting expenses improperly while it was receiving funds from Intel to use their products instead of the similar cheaper components from AMD.
Dell's shares fell about 2 percent on Thursday following the company's report.
Michael Dell would be subject to a fine if the case is settled, but would be allowed to continue as CEO and chairman of the board.
To contact the editor, e-mail:
Most Popular Slideshows
- Top 5 Richest Tennis Athletes
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- Malaysia Airlines to Axe 4,000 Employees, Including CEO; Suspends Trading of Shares
- Floyd Mayweather Gets Investment Advice from Warren Buffett What to Do With Millions
- Former U.S. VP Al Gore Backs Ovo Energy by Investing £8 Million Before IPO
- Study Shows Gap Between What Advisors Say and What Resonates with Investors
- Apple iWatch is iPhone 6 Accessory on Sept 19 Release Date: 6 Confirmed Specs & Features
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Canada Vs Russia War Erupts Via Twitter on Russia-Not Russia Maps
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected
- ISIS Wants $6.6M and Release of Aafia Siddiqui in Exchange of Head of Female US Humanitarian Aid Worker, 1st American Fighting for Jihadis Dead
- Ukraine Ceasefire Looks Remote As Putin Talks Tough At Meeting With Poroshenko
- Windows 9 To Include Interactive Live Tiles and Notification Center in Metro 2.0