Inside the Dell Shareholder Lawsuit: Did Dell and Intel Conspire?
The class-action lawsuit filed against Dell Computer on Wednesday makes a complex case, and does not provide much evidence to back up some of its principal pillars other than citing Internet blogs and press reports. Intel is involved, though only peripherally. There are leaps of logic one must take to accept its premises. But whatever the case’s outcome, it has already damaged Dell – CEO Kevin Rollins is gone, and Michael Dell is stepping in, perhaps permanently, to run damage control. There are 241 pages of allegation, but once the long citations of blogs and financial analysts’ reports are excised, it’s easier to boil down the Dell shareholders’ case against their company: The story begins in late 2002, when Dell began a cost-cutting program not unlike so many other companies in the computing field. But the suit alleges the cuts directly and substantively impacted the company’s production and service capabilities in ways that the company failed to report. So the suit claims that Dell
