Settlement is Reached in SEC Investigation Concerning Dell’s Law Violation

Dell, computer-producing company, said on Friday that it had offered a settlement in an investigation, which had already lasted for a long time, and was carried out by the U.S. Securities and Exchange Commission. It is known that Dell’s financial and accounting reporting practices have been investigated.

Dell said in a press release that SEC has accepted the idea to recommend commissioners the settlement. The SEC and a district court will have to approve the settlement.

Unfortunately, the proposed settlement was not commented by a SEC spokesman.

Dell also said in its report in June that the agency would impose a civil penalty under the proposed settlement. The reason for that penalty will be the company’s violations of federal securities laws, namely their negligence-based fraud provisions. Moreover, according to the statement, Michael Dell will be allowed to serve as CEO and chairman of the company.

Dell said in June that it wouldn’t admit or deny the SEC allegations when the settlement is made. It was reported that earlier this year US$100 million was set aside by the company for the settlement.

We know that Dell’s accounting practices have been investigated by the SEC since August 2005.