Dell and its CEO, Michael Dell, have given the SEC a proposal to settle federal accounting probes of Dell and Michael Dell. The investigations relate to Dell's relationship with chip maker Intel.
Dell executives have proposed
with the Securities and Exchange Commission to resolve a
five-year accounting investigation by the federal agency.
The company announced the update July 16. According to Dell,
staff members at the SEC have taken the proposed settlements from the company
and Chairman and CEO Michael Dell and will
recommend the settlement to the SEC.
Any settlements would have to be approved by the SEC and a U.S.
District Court. Dell already has put aside $100 million to cover the costs of
settling the probes.
The SEC began its investigation of Dell in 2005 over accounting
practices in regard to the company's relationship with chip maker Intel. A
newer probe over the two companies' dealings more directly involves Michael
The investigation already has led Dell to restate its financial
results from 2003 and into 2007, and the company also is revising its fiscal
2011 first-quarter numbers to reflect the possible $100 million settlements.
According to Dell, the settlements would cover alleged
violations of federal securities laws, including antifraud provisions. A Dell
statement last month said that any settlement would not include an admission or
denial of guilt, and would not preclude Michael Dell from continuing to run his
The allegations related to Michael Dell reportedly surround how
the company accounted for rebates and payments it received from Intel in 2008.
relationship with Dell
and other OEMs has come under scrutiny from several
agencies. Intel currently is being sued by the Federal Trade Commission and the
N.Y. State Attorney General's Office for what investigators say are anti-competitive
practices designed to influence systems makers to limit the use of competing
products from Intel rival Advanced Micro Devices.
FTC officials say Intel has continued such practices in its
dealings with graphics chip maker Nvidia.
Intel also was fined $1.45 billion by the European Commission
last year, a fine that the chip maker is appealing, and settled with AMD
in a deal that includes a $1.25 billion payment to its rival.
Intel officials have denied the allegations. In June, Intel and
the FTC suspended legal proceedings in their case to give the two sides room to
. The suspension is scheduled to last until July 22.