Dell said on Thursday it will take a $100m charge on its first quarter 2011 earnings, as a result of the federal investigation of accounting fraud at the PC maker.
Dell and the Securities and Exchange Commission (SEC) agreed on the settlement, which includes the liability payment and a civil injunctive action against the company. It is a result of Dell's violation of federal securities laws related to its accounting practices and a separate investigation into its relationship with Intel. The $100m (£68m) payment will establish a reserve as the SEC and Dell work out the final tally of fines the PC maker will pay.
Chairman and chief executive Michael Dell and the SEC are discussing a separate settlement relating to the Intel relationship. Intel was sued by the New York Attorney General's Office for paying computer makers, including Dell, rebates to illegally maintain monopoly power in the chip market and prevent AMD from gaining business with PC makers. While the details of the settlement with Michael Dell were not disclosed, it will not require him to admit to any wrongdoing or step down as an officer of the company he founded.
For more on this story, see Dell to restate earnings due to accounting fraud on CNET News.
