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Investors sue Dell on payments from Intel: WSJ...


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#1 Bob-C

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Posted 02 February 2007 - 08:52 AM

Hi everyone, see the following article from www.marketwatch.com entitled, "Investors sue Dell on payments from Intel: WSJ".

According to the article:

SAN FRANCISCO (MarketWatch) -- An investor lawsuit seeking class-action status accuses Dell Inc. of improper accounting in its relationship with chip giant Intel Corp., according to a media report published Thursday evening.

The suit, filed late Wednesday in U.S. District Court in Austin, Texas, alleges that Dell failed to properly account for and disclose quarterly rebates from Intel that inflated profits by hundreds of millions of dollars, according to a story in The Wall Street Journal's online edition. See Wall Street Journal story (subscription required).

The suit alleges that Dell received at times as much as $1 billion a year in "secret and likely illegal" kickbacks in the form of "e-Cap" or "exception to corporate average pricing" payments" from Intel to ensure that Dell used no other chip supplier, according to The Journal. Specifically, the complaint alleges that Dell received payments from Intel for not doing business with American Micro Devices. Inc.


See the DELL daily and weekly TL charts here: ---> http://www.traders-t...showtopic=65868

Cheers, :)

Bob
Disclaimer: None of my posts are meant to be taken as investment advice or trading advice. Do your own due diligence and consult your financial advisor before making any trades or investments.

#2 steve

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Posted 02 February 2007 - 10:01 AM

Sounds like a mail-in rebate to me.