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City Council could testify against Dell

Dell's share price fall has been questioned after executives sold many of their shares

A Californian lawsuit against Dell could bring the most unusual claimant to court - Wolverhampton City Council. The council might be called to testify against Dell on behalf of the West Midlands Superannuation Fund; it holds pension funds for the council's employees and lost out when most Dell executives sold their shares, causing the share price to halve.

In an interview on Channel 4 News, lawyer Patrick Daniels claimed that Dell chiefs had committed "one of the largest cases of insider trading in US history".

The programme accused Dell executives of inflating the price of shares from 2003, before selling them for more than $3.3 billion in 2004. The accusations are wrapped up with the alleged payments made by Intel to Dell to use only its processors.

Dell wouldn't comment to the programme, but Intel dismissed the accusations. A spokesperson said "significant portions appear to be entirely made-up".

At the time, Michael Dell only sold a quarter of his shares, but they were still worth over $3 billion.


Dan (Twitter, Google+) is TechRadar's Former Deputy Editor and is now in charge at our sister site Covering all things computing, internet and mobile he's a seasoned regular at major tech shows such as CES, IFA and Mobile World Congress. Dan has also been a tech expert for many outlets including BBC Radio 4, 5Live and the World Service, The Sun and ITV News.