Dell settles accounting case with SEC

Michael Dell has received a separate fine of $4m

Dell and the US Securities and Exchange Commission (SEC) have agreed on a settlement over alleged accounting violations by the PC vendor.

The company will pay a $100m (£65m) penalty as part of the settlement. Dell had previously set the cash aside in anticipation of a possible fine. Chief executive Michael Dell will pay a $4m (£2.6m) penalty.

The settlement ends an investigation inmisleading accounting practices at Dell. The company was accused of taking payments from chipmaker Intel as part of an exclusivity deal and using the money to pad out its financial reports.

"Accuracy and completeness are the touchstones of public company disclosure under the federal securities laws," said SEC enforcement director Robert Khuzami.

"Michael Dell and other senior Dell executives fell short of that standard repeatedly over many years, and today they are held accountable."

Dell issued a statement saying that it will retain an independent consultant to monitor the company's future disclosure practices.

"The board believes that this settlement is in the best interest of the company, its customers and its shareholders, as it brings a five-year SEC investigation to closure," said Dell.

"Dell's board reaffirms its unanimous support for Michael Dell's continued leadership and the management team in its ongoing commitment to transparent accounting, integrity in financial reporting and strong corporate governance."