Dell’s 401(k) Participants Sue Company

Law360, New York (October 4, 2006, 12:00 AM EDT) -- Beleaguered computer company Dell Inc. has come across yet another headache, this one the result of a proposed class action that accuses it of misleading its 401(k) participants.

According to the suit, filed Sept. 29 in the U.S. District Court in Austin, Texas, Dell violated the Employment Retirement Income Security Act by failing to disclose declining sales and profit margins and by artificially inflating the value of its fund.

For that reason, participants continued to invest in Dell common stock through their 401(k) plans when they...
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