Dell settles case with SEC

Dell and the US Securities and Exchange Commission (SEC) have agreed on a settlement over accounting alleged accounting violations by the PC vendor.

The company said that it would be paying a US$100 million penalty as part of the settlement. Dell had previously set the cash aside in anticipation of a possible fine. Additionally, chief executive Michael Dell will pay a US$4 million penalty.

The settlement ends an investigation over misleading accounting practices at Dell. The company was accused of taking payments from chipmaker Intel as part of an exclusivity deal and then using the money to pad its financial reports.

"Accuracy and completeness are the touchstones of public company disclosure under the federal securities laws,” said SEC enforcement director Robert Khuzami.

“Michael Dell and other senior Dell executives fell short of that standard repeatedly over many years, and today they are held accountable.”

Dell issued a statement of its own on the matter, saying that it would be retaining an independent consultant to monitor the company's future disclosure practices.

"The Board believes that this settlement is in the best interest of the company, its customers and its shareholders, as it brings a five-year SEC investigation to closure," said Dell board director

"Dell’s Board reaffirms its unanimous support for Michael Dell’s continued leadership, and the management team in its ongoing commitment to transparent accounting, integrity in financial reporting and strong corporate governance."