Looks like Dell is being sued for accepting kickbacks from Intel which were paid to stop it using AMD chips:
Dell shareholders are suing the computer maker over allegations it took kickbacks from Intel to maintain an exclusive relationship with the chipmaker.
The class action suit alleges Dell's profits were inflated by as much as $800m a year by the payments. The money was paid as long as Dell rejected chips from rival supplier AMD. Dell only started offering machines with AMD processors last year.
The case, filed in Austin, Texas, alleges the computer maker failed to properly account for the money and defrauded shareholders. The filing was made Wednesday last week - the same day Dell announced Kevin Rollins would be replaced as CEO by Michael Dell.
The problem isn't the payments themselves, Intel and Dell can enter into any agreement they like. Rather, it's the way they were accounted for: you have to tell the world how you're making your profits.
No comments:
Post a Comment