Dell, Inc. Summary: According to a press release dated September 13, 2006, the Complaint alleges that Dell violated federal securities laws by reporting inflated financial results, including its accrual and reserves. It is alleged that the defendants concealed that the SEC was investigating Dell's revenue recognition and accounting practices. Defendants began reducing sales and profit projections as Dell began missing its own revenue, EPS and unit sales growth targets, causing significant declines in its stock price. In order to support the Company's stock price, defendants continued concealing the full extent of Dell's problems and promising a quick turnaround.
The complaint further alleges that on or around August 17, 2006, Dell announced its fifth consecutive quarter of disappointing results, again significantly missing its revenue and EPS targets. The Company also revealed that the SEC had begun investigating its revenue recognition and accounting practices in August 2005, and in connection with its own internal accounting review it had recently discovered information that raised potential issues relating to certain periods prior to fiscal 2006. Dell also disclosed that its Audit Committee was undertaking a full review.
Finally, on September 11, 2006, defendants disclosed that Dell would not be able to file its interim financial report for its second quarter of 2007 and that the U.S. Attorney's Office for the Southern District of New York had served Dell with a subpoena requesting documents concerning its accounting and financial reporting between 2002 and 2006.
According to a press release dated October 13, 2008, the U.S. District Court for the Western District of Texas dismissed certain claims in a consolidated class-action lawsuit entitled "In Re Dell, Inc. ERISA Litigation," filed against Dell, Inc. The lead plaintiffs have asserted claims under ERISA based on allegations that Dell and certain current and former directors and officers imprudently invested and managed participants' funds and failed to disclose information regarding its stock held in the 401(k) Plan. On June 23, 2008, the court granted the defendants' motion to dismiss as to the plaintiffs' claims under ERISA based on allegations of imprudence, but the court denied the dismissal motion as to the claims under ERISA based on allegations of a failure to accurately disclose information, according to the company's Sept. 3, 2008 Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended Aug. 1, 2008.
The judge ordered four related cases to be consolidated, appointed lead plaintiff and lead counsel on February 28, 2007. Plaintiffs filed a notice of intent to file a consolidated complaint on April 13, 2007. However, a consolidated complaint has yet to be filed as of November 5, 2007.
On November 3, 2008, a notice of Appeal was filed with the United States Court of Appeals for the Fifth Circuit from the Order and Order of Dismissal, requesting dismissal of all claims against defendant.
On November 20, 2009, a Joint Motion was filed by the Appellant and the Appellees to remand case to the United States District Court for the Western District of Texas, Austin Division for the limited purpose of reviewing and approving the settlement, to continue abatement of appeal Reason: pending the approval of the settlement
On December 08, 2009, an appellate Court Order granted a joint motion to remand case for the limited purpose of reviewing and approving the settlement. The order also granted a motion to continue abatement of the appeal in the court filed by Appellees.
On December 22, 2009, an order preliminarily approving settlement and providing for notice was entered into the Court’s docket.
On June 11, 2010, an Order Granted in part and Denied in part various Motions: for Settlement; for Certification of the Settlement Class; and for Final Approval of the Settlement Plan of Allocation; for Attorney Fees.
On July 20, 2010, a Final Judgment was ordered by the Court approving the Order and stipulation of settlement on June 11, 2010.
On July 29, 2010, a notice of appeal was filed by the Appellants in connect with the Order issued on June 11, 2010.
SIC Code: 3571
Industry: Computer Hardware
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