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Unformatted text preview: rmer directors and officers were consolidated as In re Dell Securities Litigation, and a lead plaintiff was appointed by the court. The lead plaintiff asserted claims under Sections 10(b), 20(a), and 20A of the Exchange Act based on alleged false and misleading disclosures or omissions regarding Dell's financial
statements, governmental investigations, internal controls, known battery problems and business model, and based on insiders' sales of Dell
securities. This action also included Dell's independent registered public accounting firm, PricewaterhouseCoopers LLP, as a defendant. On
October 6, 2008, the court dismissed all of the plaintiffs claims with prejudice and without leave to amend. On November 3, 2008, the plaintiff
appealed the dismissal of Dell and the officer defendants to the Fifth Circuit Court of Appeals. The appeal was fully briefed, and oral argument
on the appeal was heard by the Fifth Circuit Court of Appeals on September 1, 2009. On November 20, 2009, the parties to the appeal entered
into a written settlement agreement whereby Dell would pay $40 million to the proposed class and the plaintiff would dismiss the pending
litigation. The settlement was preliminarily approved by the District Court on December 21, 2009. The settlement was subject to certain conditions, including opt-outs from the proposed class not exceeding a specified percentage and final approval by the District Court. During the
first quarter of Fiscal 2011, the original opt-out period in the notice approved by the District Court expired without the specified percentage
being exceeded. The District Court subsequently granted final approval for the settlement and entered a final judgment on July 20, 2010. Dell
paid $40 million into an escrow account to satisfy this settlement and discharged the liability during the second quarter of Fiscal 2011. Certain
objectors to the settlement have filed notices of appeal to the Fifth Circuit Court of Appeals with regard to approval of the settlement. While...
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This document was uploaded on 02/22/2014 for the course ACCT 6330 at University of Texas at Dallas, Richardson.
- Spring '11