NEW YORK, Nov. 1, 2006 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") reminds investors of Dell Inc. ("Dell" or the "Company") (NYSE:DELL) that November 13 is the deadline for shareholders who wish to ask the Court to appoint them as lead plaintiff. Pomerantz filed a class action in the United States District Court Western District of Texas, against the company and certain officers. The class action was filed on behalf of purchasers of the common stock of the Company during the period from February 13, 2003 through September 8, 2006, inclusive (the "Class Period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder.
Dell, headquartered in Round Rock, Texas, engages in the design, development, manufacture, marketing, sale and support of various computer systems and services to customers worldwide. The Complaint alleges that during the class period defendants reported inflated financial results by misstating the Company's accrual and reserves on the Company's balance sheet. In August 2005, the SEC began investigating the Company's revenue recognition and accounting practices, but Dell concealed the investigation from investors. However, unable to maintain the charade, defendants began carving down sales and profit projections and Dell began missing its own revenue, earnings per shares 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 demise and promised a quick turnaround. On August 16, 2006, Dell announced it would be forced to recall over 4 million laptop batteries citing a high combustion risk. On August 17, 2006 the Company announced its fifth consecutive quarter of disappointing results. Dell's profits fell 51% from the same quarter one year earlier. Finally, on September 11, 2006 defendants disclosed that the Company would not be able to file its interim financial report for second quarter 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 wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca