SEC v. Dell Inc. et al.
Case Number: 10-cv-1245 (RJL) (D.D.C.)
On July 22, 2010, the Commission filed a complaint against Dell Inc. (“Dell”) and certain of its current and former senior executives, Michael S. Dell, Kevin B. Rollins, James M. Schneider, Leslie L. Jackson and Nicholas A.R. Dunning (collectively, the “Defendants”). The complaint alleged, from 2001 through 2006, failed to disclose material information (specifically, the receipt of large payments from Intel Corporation) to investors and used fraudulent accounting to make it falsely appear that Dell was consistently meeting Wall Street earning targets and reducing its operating expenses. As part of the Final Judgments entered by the United States District Court for the District of Columbia on October 13, 2010, the Defendants agreed to pay approximately $111,418,947.00, plus accrued interest.
On August 27, 2010, the Commission filed related cases against two former Dell officers, Robert W. Davis and Randall D. Imhoff, for alleged accounting misconduct. As part of the final judgments, they agreed to pay $203,158.00 and $44,049.00, respectively.
On October 21, 2011, the Commission filed a motion to establish a Fair Fund and appoint Garden City Group, Inc. as the Distribution Agent to oversee the administration and distribution of the Fair Fund to harmed investors. On November 15, 2011, the Court granted the Commission's motion and entered an order establishing a Fair Fund and appointing the Garden City Group, Inc. as Distribution Agent to oversee the administration of claims to harmed Dell investors and to distribute the Fair Fund under the terms of the distribution plan. See Order Appointing Distribution Agent and Establishing Fund.
On July 24, 2014, the Commission filed a motion to disburse the entire Fair Fund ($111,498,000.12), minus fees, to the Distribution Agent for distribution to eligible investors. On July 28, 2014, the Court granted the Commission’s motion and entered an order to disburse the Fair Fund, minus Court fees, to the Distribution Agent for distribution to eligible investorsSee the Court’s Order.
For additional information, please contact the Distribution Agent: