Defendant Name:
Dell Inc.
Defendant Type:
Public Company
SIC Code:
3570
CUSIP:
24702R10
Initial Case Details
Legal Case Name
SEC v. Dell Inc., Michael S. Dell, Kevin B. Rollins, James M. Schneider, Leslie L. Jackson, Nicholas A.R. Dunning
First Document Date
22-Jul-2010
Initial Filing Format
Civil Proceeding
Case Number
10-cv-01245
Allegation Type
Issuer Reporting and Disclosure
Federal District Court
District of Columbia, District of Columbia
Violations Alleged
•
Sec 17(a) (Not specified)
Additionally,
James M. Schneider is alleged to have aided and abetted Dell Inc.'s violation of Rule 12b-20 of the Exchange Act.
Kevin B. Rollins is alleged to have aided and abetted Dell Inc.'s violation of Rule 12b-20 of the Exchange Act.
Michael S. Dell is alleged to have aided and abetted Dell Inc.'s violation of Rule 12b-20 of the Exchange Act.
Nicholas A. R. Dunning is alleged to have aided and abetted Dell Inc.'s violation of Rule 12b-20 of the Exchange Act.
Leslie L. Jackson is alleged to have aided and abetted Dell Inc.'s violation of Rule 12b-20 of the Exchange Act.
James M. Schneider is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(a) of the Exchange Act.
Kevin B. Rollins is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(a) of the Exchange Act.
Michael S. Dell is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(a) of the Exchange Act.
Nicholas A. R. Dunning is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(a) of the Exchange Act.
Leslie L. Jackson is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(a) of the Exchange Act.
James M. Schneider is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-1 of the Exchange Act.
Kevin B. Rollins is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-1 of the Exchange Act.
Michael S. Dell is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-1 of the Exchange Act.
Nicholas A. R. Dunning is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-1 of the Exchange Act.
Leslie L. Jackson is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-1 of the Exchange Act.
James M. Schneider is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-13 of the Exchange Act.
Kevin B. Rollins is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-13 of the Exchange Act.
Michael S. Dell is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-13 of the Exchange Act.
Nicholas A. R. Dunning is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-13 of the Exchange Act.
Leslie L. Jackson is alleged to have aided and abetted Dell Inc.'s violation of Rule 13a-13 of the Exchange Act.
James M. Schneider is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act.
Nicholas A. R. Dunning is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act.
Leslie L. Jackson is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act.
James M. Schneider is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act.
Nicholas A. R. Dunning is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act.
Leslie L. Jackson is alleged to have aided and abetted Dell Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act.
Resolutions
First Resolution Date
22-Jul-2010
Headline Total Penalty and Disgorgement
$111,171,740
Related Documents:
Complaint
On July 22, 2010, the SEC filed a complaint against Dell Inc. and other individual defendants. According to the SEC the action was brought: "for various disclosure and accounting violations involving Dell Inc. ('Dell') from 2001 to 2006. Dell's disclosure violations, which relate primarily to Dell's receipt of large payments from Intel Corporation ('Intel'), fraudulently misrepresented the basis for Dell's improving profitability. Dell's separate fraudulent and improper accounting during this time period wrongfully made it appear that Dell was consistently meeting Wall Street earnings targets and reducing its operating expenses through the company's Management and operations."
SEC Charges Dell and Senior Executives with Disclosure and Accounting Fraud
On July 22, the SEC published a litigation release announcing that it filed a settled civil action against Dell Inc. and other individual defendants charging the company with: "failing to disclose material information to investors and using fraudulent accounting to make it falsely appear that the company was consistently meeting Wall Street earnings targets and reducing its operating expenses."
2010-131
22-Jul-2010
Press Release--Civil Action
SEC Charges Dell and Senior Executives with Disclosure and Accounting Fraud; Company to Pay $100 Million Penalty, Michael Dell to Pay $4 Million Penalty
On July 22, 2010, the SEC announced that it charged Dell Inc. ("Dell") with failing to disclose material information to investors and using fraudulent accounting to make it falsely appear that the company was consistently meeting Wall Street earnings targets and reducing its operating expenses. The SEC's complaint, filed in federal district court in Washington, D.C., also charged Dell Chairman and CEO Michael Dell, former CEO Kevin Rollins, and former CFO James Schneider for their roles in the disclosure violations. In addition, Schneider, former regional Vice President of Finance Nicholas Dunning, and former Assistant Controller Leslie Jackson were charged for their roles in the improper accounting. Without admitting or denying the SEC's allegations, Dell Inc. consented to the entry of an order that permanently restrains and enjoins it from violation of the federal securities laws. The company also agreed to enhance its Disclosure Review Committee and disclosure processes, including the retention of an independent consultant to recommend improvements to those processes and enhance training regarding the disclosure requirements of the federal securities laws. Dell Inc. must also pay a $100 million penalty to settle the SEC's charges. Michael Dell and Rollins each agreed to pay a $4 million penalty, and Schneider agreed to pay $3 million, to settle the SEC's charges against them. Dunning and Jackson also agreed to settle the SEC's charges.
Final Judgment as to Defendant Dell, Inc.
On November 13, 2010, Federal District Judge Richard J. Leon entered final judgment against Dell Inc. pursuant to the consent of Dell Inc.
Order for Establishment of a Fair Fund and Appointment of Distribution Agent
On November 14, 2011, Federal District Judge Richard J. Leon ordered the establishment of a Fair Fund (the "Dell Fair Fund") and the appointment of The Garden City Group, Inc. as Distribution Agent.
Order Approving Distribution Plan
On December 10, 2012, the Court granted the SEC's motion for an order approving a distribution plan for the Dell Fair Fund and approved the submitted proposed Distribution Plan.
Order to Transfer Funds to the Distribution Agent for Disbursement
The Court granted the SEC's motion for an order to transfer funds to the distribution agent for disbursement to eligible claimants.
Other Defendants in Action:
