LAWFUEL.com – Dell Computers faces an investor lawsuit alleging that it improperly accounted for hundreds of millions of dollars in payments from its partner Intel, reports say.
The lawsuit accuses Dell of artificially inflating profits through the secret receipt of approximately $US250 million a quarter in likely illegal rebate kickback payments from Intel in exchange for a deal to purchase Intel’s microprocessors.
Intel denied the accusations and said that some of the claims appear to “rehash” similar complaints against the chip maker by smaller rival AMD. A Dell spokesman would not comment on the lawsuit.
A Dell spokesman said the company does not comment on pending litigation. The company has not seen the lawsuit, he added.