Dell accused of defying court order

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Dell Inc, has been accused of refusing to comply with court orders to reveal secret documents in an ongoing dispute with a client over allegedly faulty computers.

In a Thursday filing to a U.S. district court in North Carolina, Advanced Internet Technologies (AIT) has accused Dell (DELL, Fortune 500) of continuing to withhold documents and internal e-mail transactions revealing that the company knew there were problems with its OptiPlex computers.

"AIT is in possession of at least one document showing that Dell senior executives were involved in the development of 'talking points' designed to minimize to Dell's customers and shareholders the full extent of capacitor failures in the OptiPlex computers," read the latest filing.

Dell spokesman Jess Blackburn denied the allegations.

"We disagree with AIT's contention that we violated the discover order and will be filing our response with the court soon," wrote Blackburn in an e-mail to CNNMoney.com. "We take all court orders and our obligations to comply with them very seriously."

The dispute dates back to a period from 2003 to 2005, when Dell sold computers with faulty capacitors that allegedly caused most motherboards on two OptiPlex models to break.

Advanced Internet Technologies, based in Fayetteville, N.C., is in the process of suing Dell for damages from the breakdown of nearly 2,000 OptiPlex systems that it had leased to clients. The company has said that it lost nearly $16 million from cancelled contracts and $22 million on discounts it offered to hold onto spurned customers.

"AIT has sought documents on this issue from the outset of discovery, but Dell has consistently resisted providing documents relating to its decision to withhold, withdraw, or purge OptiPlex computer[s] containing defective capacitors," Advanced Internet Technologies said in the filing. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,081.81 57.64 0.32%
Nasdaq 4,786.71 21.29 0.45%
S&P 500 2,087.05 4.88 0.23%
Treasuries 2.29 0.03 1.51%
Data as of 11:04am ET
Company Price Change % Change
Bank of America Corp... 18.04 0.12 0.64%
Gilead Sciences Inc 92.34 2.89 3.23%
General Electric Co 25.71 -0.17 -0.66%
Cisco Systems Inc 28.57 0.32 1.13%
Apple Inc 112.22 -0.32 -0.28%
Data as of 10:50am ET

Sections

JetBlue is offering to fly police to New York for the funeral of slain NYPD officers and is working to have the family of one of the officers flown in from overseas. More

Many Americans are buying more gifts -- and more expensive gifts -- for Christmas. That's squeezing some in the middle class. More

According to data from Google Trends and GrubHub, Chinese food remains the most popular type of food order on Christmas. More

If you're looking to sell your holiday gift cards for cold hard cash... there's an app for that. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.