Dell shares up slightly after revealing fraud probe

Dell shares were trading slightly higher on Friday
People look at Dell computer products at a Dell kiosk in 2006 in New York City. Dell shares were trading slightly higher on Friday, a day after the US computer giant said it was setting aside 100 million dollars in connection with a fraud probe.

Dell shares were trading slightly higher on Friday, a day after the US computer giant said it was setting aside 100 million dollars in connection with a fraud probe.

Dell shares were up 0.15 percent to 13.09 dollars about two hours after the opening bell on Wall Street.

The Texas-based company said Thursday that it was in ongoing talks with the US (SEC) in connection with its dealings with US computer chip giant Intel.

said it had put aside 100 million dollars for a potential settlement of alleged violations of anti-fraud provisions of federal securities laws relating to accounting and financial reporting.

Dell said the settlement would "include negligence-based fraud charges" and "non-fraud based charges" regarding its commercial dealings with Intel.

Intel, which produces some 80 percent of the microprocessors used in the world's personal computers, has been accused in an anti-trust lawsuit in New York of engaging in illegal practices to dominate the market for computer chips.

Dell said a potential settlement with the SEC would not bar Dell chairman and chief executive Michael Dell from continuing to serve as an officer or director of the company.

"We are hopeful that these discussions will achieve a comprehensive resolution in the near future," Sam Nunn, presiding director of the Dell Board, said in a statement.

"The independent directors of the board have affirmed that Michael Dell will continue to lead the company as its chairman and CEO, and he continues to have our complete confidence and support," Nunn said.


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Citation: Dell shares up slightly after revealing fraud probe (2010, June 11) retrieved 16 July 2019 from https://phys.org/news/2010-06-dell-slightly-revealing-fraud-probe.html
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