June 13, 2010
Dell Shares Rise After News Of Fraud Probe
After Dell said on Friday that it would set aside 100 million dollars in connection with a fraud probe, shares for the company slightly increased slightly.
Shares went up 0.15 percent to 13.09 dollars within two hours of the opening bell on Wall Street.Dell announced Thursday that it was talking with the US Securities and Exchange Commission (SEC) in connection with its business with US computer chip company Intel.
Dell said the money will be used for a potential settlement of alleged violations of anti-fraud provisions of federal securities laws pertaining to accounting and financial reporting.
Intel, which produces around 80 percent of the microprocessors used in all personal computers, has been accused of engaging in illegal practices to dominate the market for computer chips. An anti-trust lawsuit on the matter was filed in New York.
Dell said the possible settlement with the SEC would not keep Dell chairman and chief executive Michael Dell from continuing to serve as director of the company.
"We are hopeful that these settlement discussions will achieve a comprehensive resolution in the near future," presiding director of the Dell Board, Sam Nunn, said in a statement.
"The independent directors of the board have affirmed that Michael Dell will continue to lead the company as its chairman and CEO, and he continues to have our complete confidence and support," Nunn said.
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