Case Page

 

Case Status:    SETTLED
On or around 06/02/2014 (Date of stipulation and/or agreement of settlement)

Filing Date: September 13, 2006

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.

On February 19, 2014, the court issued an order for the Clerk to DISMISS the Motion to vacate Notice of Rejection of Claim. On June 2, 2014, the US Court of Appeals issued an appeals record.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Hardware
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: DELL
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Texas
DOCKET #: 06-CV-00726
JUDGE: Hon. Sam Sparks
DATE FILED: 09/13/2006
CLASS PERIOD START: 02/13/2003
CLASS PERIOD END: 09/08/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Shuman, LLP
    801 East 17th Avenue, Dyer & Shuman, LLP, CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  3. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  4. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  5. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
No Document Title Filing Date
COURT: W.D. Texas
DOCKET #: 06-CV-00726
JUDGE: Hon. Sam Sparks
DATE FILED: 01/31/2007
CLASS PERIOD START: 02/13/2003
CLASS PERIOD END: 09/08/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
No Document Title Filing Date
No Document Title Filing Date
No Document Title Filing Date