Browse Business Software Categories


Dell Is Sued for Knowingly Selling Faulty Computers

Dell Inc., an information technology corporation most noted for their inexpensive computers, just unsealed a three year law suit against them for intentionally selling faulty computers. Suspicions arose after the University of Texas math department’s computers started failing and Dell employees claimed it was because difficult math calculations were being performed on the machines. In reality, parts of the computers were leaking chemicals, which caused the malfunction.

Dell shipped out around 11.8 million faulty OptiPlex computers between May 2003 and June 2005 to many large companies, including Wells Fargo and Wal-Mart. All of the machines failed at the same time, which was why people started questioning the validity of Dells’ claims. Ironically enough, the firm that represented Dell in this law suit had 1000 Dell computers that malfunctioned.

Dell OptiPlex Computer

It was recently revealed that Dell did know that the computers would probably leak the chemicals causing them to break and they knowingly withheld this information from their customers. The capacitors, made by Nichicon, were the problem. They are essential to computers, but they are not meant to leak. The leaking could cause the computers to break down or even catch on fire.

Dell has rapidly declined as this law suit scarred their reputation, their customer service has deteriorated, and they have had accounting issues. Dell tried to resolve their issues by offering to fix the faulty computers, in 2005, but they replaced the faulty computers with other faulty computers. Also, Dell never recalled the computers- they only replaced them or fixed them when there was a formal complaint. Dell tried to cover up all of the problems to customers by making up excuses for the malfunctioning.

Advanced Internet Technologies filed the lawsuit in 2007 because apparently they had lost millions of dollars because of the breaking computers. Michael Dell, the company’s founder and CEO, is being charged for fraud and misconduct. The law suit has not yet gone to trial. Time will tell how this will turn out, but it is likely that Dell will lose a large portion of their customer base in addition to a guilty verdict at the trial.

[Photo courtesy of indianexpress.]