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Bad Day for Dell: Company Fined $100M and Gets Caught With Infected Motherboards

by Matthew Zuras on July 23, 2010 at 03:10 PM

dell computers with fail logoThese are dark times for Dell. As we reported last month, the computer manufacturer has been under fire for knowingly selling over 11.8 million faulty computers, and is currently embroiled in yet another lawsuit. Now it comes to light that some of the motherboards it recently sent out were filled with malware. The company has admitted as much, saying that the problems have only affected a "small number" of their PowerEdge PCs. According to DigitalTrends, the malware is showing up in the server management firmware embedded in the boards, and is really only affecting enterprise-level servers, not consumer computers.

But, in even worse news, the company settled yesterday with the Securities and Exchange Commission for fraud charges -- to the tune of $100 million. According to the SEC's allegations, Dell misled investors by padding its quarterly statements with money it had received from Intel during back-room agreements to not use chips made by competitor Advanced Micro Devices. Investors were not made aware of the dealings, and Dell was able to project greater financial results than it had actually achieved. [From: DigitalTrends and New York Times]

Tags: dell, enterprise, malware, motherboard, SecuritiesAndExchangeCommission, security, top

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