As Dell Inc. considers its future after a massive loss in value over the past decade, the question may fundamentally be this: are the company's problems are the result of poor leadership or a relatively straightforward matter of shedding its stock obligations?Two proposals are on the table. First, founder Michael Dell has proposed taking the company private by buying out the company's stock for $24.4 billion through a private equity firm called Silver Lake. Second, business magnate Carl Icahn's Southeastern Asset Management has offered to buy Dell for $12 in cash per share. Unfortunately, it's not clear how the buyout negotiations are going.An unquestioned leader in the personal computer industry in the 90s, Dell had lost some $68 billion in stock market value by 2010, reportedly due to a change in its customer base and inability to respond to Apple's iPhone and iPad products. Sales at Dell continue to shrink, reportedly showing a 79 percent drop in a quarterly profit report filed last … [Read more...] about Weighing Going Private or Sale to Carl Icahn, Dell Cuts off Info
The law firm defending Dell in a lawsuit claiming faulty equipment was itself complaining about the company’s computers, according to documents recently released in the litigation.Dell had “balked at fixing 1,000 suspect computers” at the law firm, Alston & Bird, the New York Times reports, citing e-mail uncovered in the three-year-old lawsuit.The article also cites an e-mail exchange between Dell customer support employees after a complaint from another law firm, Simpson Thacher & Bartlett. A Dell worker’s e-mail suggests that the company’s employees were aware of faulty motherboards, the story says. “We need to avoid all language indicating the boards were bad or had ‘issues’ per our discussion this morning,” the e-mail reads.According to the story, the documents suggest Dell sold at least 11.8 million OptiPlex desktop computers to business and government customers between 2003 and 2005 that were at risk of failing. The … [Read more...] about Dell’s Own Law Firm Had Trouble with the Computers, Lawsuit Reveals
In In Re Appraisal of Dell, C.A. No. 9322-VCL (Del. Ch. October 17, 2016), the law firm representing Dell Inc.’s stockholders in appraisal proceedings challenging the valuation of shares in connection with Dell’s 2013 “go-private” merger was awarded approximately $4 million in advanced expenses and $4 million in attorneys’ fees. The Delaware Court of Chancery held that the amounts were reasonable and that the expenses and fees should be allocated pro rata among the appraisal class. Since this was a case where counsel had incurred significant out-of-pocket expenses, the court held that the approach that best balanced the interests of the attorneys and the class was to deduct reimbursable expenses first, then award a fee based on the net benefit achieved.In 2013, Dell Inc. (“Dell”) completed a merger that was structured as a management buyout, and dissenting stockholders sought appraisal of their shares. The law firm of Grant & Eisenhofer … [Read more...] about Delaware Chancery Court Grants Fee and Expense Award in Dell Appraisal Case
Acceleron, LLC has filed another lawsuit asserting U.S. Patent 6,948,021 (“the ‘021 Patent”), now against defendant Dell, Inc., the second lawsuit filed on the ‘021 Patent in roughly the last 3 months.As previously mentioned in a September 5 post, Acceleron had sued Hitachi Data Systems Corporation in late August 2012 for infringement of the ‘021 Patent.On November 28, Acceleron filed a complaint in the Northern District of Georgia against Dell for infringement of the ‘021 patent, which is entitled “Cluster Component Network Alliance System and Method for Enhancing Fault Tolerance and Hot-Swapping.” Acceleron identifies Dell’sPowerEdge[™] M1000e Blade Enclosure, associated models, and [certain specified] server blades” as the accused products. Acceleron believes the infringement to be willful, and pursuant to 35 U.S.C. § 284 seeks increased damages as well as injunctive relief and the costs of the … [Read more...] about Acceleron Asserts its ‘021 Patent Against Dell, Inc.
A spokesman for Dell is disputing a claim that it withheld evidence in a lawsuit that claims it sold faulty computers and then tried to hide the problems.A motion by the plaintiff, Internet services company Advanced Internet Technologies, claims that Dell violated discovery orders by failing to produce e-mails from top executives and other documents, the New York Times reports.The motion argues Dell must have had more high-level communications about computer problems than a “talking points” memo already disclosed, the Time says. A related affidavit filed by digital forensics expert Larry Daniel said Dell had cut and pasted e-mail messages rather than supplying the actual messages, and a few appeared to be altered and incomplete, the Times says.Dell spokesman David Frink says the company disagrees with the accusation that it violated a discovery order and it will be filing a response. “We take all court orders and our obligations to comply with them very … [Read more...] about Dell Disputes Claim It Hid E-Mail Evidence in Suit Claiming Faulty Computers