HARTFORD, Conn., Sept. 13, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Texas on behalf of all persons who purchased the publicly traded securities of Dell, Inc. (the "Company") (Nasdaq:DELL) between February 13, 2003 and September 8, 2006, inclusive, (the "Class Period").
The Complaint alleges that Dell violated federal securities laws by reporting inflated financial results, including its accrual and reserves. It is alleged that the defendants concealed that the SEC was investigating Dell's revenue recognition and accounting practices. Defendants began reducing sales and profit projections as Dell began missing its own revenue, EPS and unit sales growth targets, causing significant declines in its stock price. In order to support the Company's stock price, defendants continued concealing the full extent of Dell's problems and promising a quick turnaround.
On August 17, 2006, Dell announced its fifth consecutive quarter of disappointing results, again significantly missing its revenue and EPS targets. The Company also revealed that the SEC had begun investigating its revenue recognition and accounting practices in August 2005, and in connection with its own internal accounting review it had recently discovered information that raised potential issues relating to certain periods prior to fiscal 2006. Dell also disclosed that its Audit Committee was undertaking a full review.
Finally, on September 11, 2006, defendants disclosed that Dell would not be able to file its interim financial report for its second quarter of 2007 and that the U.S. Attorney's Office for the Southern District of New York had served Dell with a subpoena requesting documents concerning its accounting and financial reporting between 2002 and 2006.
If you are a member of the class, you may, no later than November 13, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
For more information about the case, its claims, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com. To view a copy of the complaint filed by Schatz & Nobel, or for more information about class action cases and Schatz & Nobel, please visit our website: www.snlaw.net.