The ongoing semi-fiasco over Intel's special treatment of Dell to ensure the world's largest (or second-largest, now) computer systems manufacturers only used its CPU chips is attracting more attention. Although MDF (marketing development funds) is just a slick way, in some cases, to ensure the "good old boy" network doesn't break down, this is precisely what is at the center of Intel's reported misdeeds by paying huge sums of money to Dell to ensure the computer maker would not use competing AMD chips.A recently filed shareholder suit against Dell masks potentially incriminating evidence that Intel did indeed pay Dell wads of cash -- and sometimes even a billion a year -- to ensure Dell stayed exclusive to Intel chips. That broke down in late 2006 when Dell began offering mainstream PCs with AMD chips, but until then, all consumer and business PC shipments contained Intel chips.
Can the shareholder suit against Dell really be proven, and does it hold water? Class-action lawsuit fan Bill Lerach brought the lawsuit, and of course, frivolity sometimes takes the cake in class-action suits. Nothing new here. But, the difference here is that Lerach's details are very descriptive -- so maybe he has inside help or something. Will Michael Dell end up with a black eye after this is all done? He's again at the top of the company he founded, so anything is possible.
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