New York State Attorney General Andrew Cuomo has filed a lawsuit against Dell, saying the personal computer maker misled consumers with its PC financing offers.
Dell confirmed the suit on Wednesday, and said it intended to vigorously defend itself against it.
The complaint charges that the Round Rock, Texas-based company and its financing subsidiary, Dell Financial, used deceptive practices to convince consumers to finance PC purchases through the company, misleading consumers about the interest rates charged and other terms of the purchases.
The lawsuit, filed in Albany County Supreme Court, also claims that Dell was not responsive to attempts to cash in on rebate offers and frustrated efforts by consumers to have warranties offered.
The action comes as founder and CEO Michael Dell attempts to pen a turnaround story for his namesake company, which has been battered by internal issues — including an accounting probe that has turned up questionable practices and a starring role in last year’s worldwide recall of Sony laptop batteries — and competitive pressures.
Rival HP has roared past Dell to claim the worldwide PC sales crown and it’s threatening Dell’s long-held market share lead in the United States.