Dell Faces Lawsuit Alleging Secret Kickbacks From Intel

Dell has received a class action lawsuit from investors accusing the company of improper accounting in its longtime partnership with chipmaker Intel Corp., reports the Wall Street Journal. Specifically, the lawsuit alleges that Dell’s profits were inflated by hundreds of millions of dollars in “secret and likely illegal” kickbacks by Intel to ensure the exclusive use of its chips inside Dell computers. The lawsuit also accuses Dell of misleading investors about “serious accounting, quality and customer-service problems.”

It’s impossible at this point to come up with our own conclusions until more facts are known, but this could spell trouble for both Dell and Intel if it proves true. A spokesman for Intel rejected the allegations however, stating that they seem to have “been completely made up”. I think the real question is regards to whether or not there is even a table large enough to hand a Billion dollars under?

Source: Daily Tech