Daily Management Review

Dell settles $1B lawsuit from investors


The American company Dell agreed to pay $1 billion in a settlement with investors who sued the company.

This was stated by the corporation in a statement submitted to the Securities and Exchange Commission of the United States. The Delaware Court of Chancery, which is hearing the dispute, will need to approve the arrangement.

Dell made a decision to repurchase some of its stock in 2018. It paid $14 million in cash for the securities and exchanged all of the Class V shares for 149.4 million Class C shares. The transaction was associated with Dell's 2015 $67 billion acquisition of cloud software company VMware. VMware, which was spun off as a separate business in 2021, was fully under the corporation's control as a result of the stock transaction.

Investors sued Dell because they thought that as a result of this transaction, Dell had underpaid several billion dollars to securities holders.

source: nasdaq.com