Dell settles SEC charges for $111 million

July 23, 2010 at 12:34 PM
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AUSTIN, Texas, July 23 (UPI) -- Dell Inc. settled a five-year battle over security fraud charges with the federal Securities and Exchange Commission for more than $100 million.

In addition, without confirming or denying the SEC's charges, Chief Executive Officer Michael Dell and former CEO Kevin Rollins each agreed to pay $4 million, the Austin American-Statesman reported. Jim Schneider, Dell's former chief financial officer, will pay $3 million, bringing the total settlement to $111 million.

In 2005, Dell and some of its key executives were accused by the SEC of not disclosing more than $4.2 million in rebates from computer chipmaker Intel Corp.

An internal company e-mail quoted in the SEC's complaint indicated Dell was depending on the payments from Intel, the newspaper said.

A March 2004 e-mail showed Dell's chief accounting officer told Michael Dell, Rollins and Schneider the company would be able to meet Wall Street analyst estimates "as long as we get $75 million from Intel.

Dell announced it was taking a $100 million charge against first-quarter earnings in June.

"We are pleased to have resolved this matter," Michael Dell said in a statement. "We are committed to maintaining clear and accurate reporting of our periodic results, supporting our customers and executing our growth strategy."

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