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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Dell, Inc.

Accounting Irregularities (Securities Litigation)

Date: 11/20/2009 (Date of Settlement)

Misconduct Type: Securities

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: $40,000,000

Disposition: Settlement

Synopsis: A consolidated securities class action lawsuit claimed Dell violated the Securities Exchange Act of 1934 by engaging in accounting fraud and making false and misleading disclosures to inflate its revenues by approximately $463 million from fiscal years 2003 to 2007. In October 2008, the court dismissed the lawsuit. During the appeal, both sides negotiated a settlement under which Dell agreed to pay $40 million.