Michael Dell has come under scrutiny in a long-running investigation by the Securities and Exchange Commission.
The legal bureau is investigating the founder and chief executive of Dell because of its dealings with chip giant Intel Corp. Dell faces allegations related to its accounting and other issues, including aspects of its commercial relationship with Intel such as taking cash from the chip company to use its products over those of rivals. According to the Wall Street Journal, the company said it will take a $100 million reserve to cover expected costs of settling the case.
Over the years Intel’s dealings with computer makers have been a focus of government antitrust suits in the U.S., Europe, Japan and South Korea, which accuse Intel of bribing companies to work with its products instead of from rivals like Advanced Micro Devices Inc, by offering monetary incentives.
Yesterday it was reported that Mr. Dell and the Securities and Exchange Commission had been discussing a “settlement framework” to resolve allegations that relate to the company’s dealings with Intel. Dell said that any settlement would include a monetary penalty, but wouldn’t include an admission of wrongdoing and would allow Mr. Dell to continue in his position.
According to the WSJ, Sam Nunn, the former Georgia senator and presiding director of the Dell board said in a statement: “We are hopeful that these settlement discussions will achieve a comprehensive resolution in the near future.” He added that Mr Dell continued to have the company’s “complete confidence and support.”