Topics: Mobile

Dell Takes the One-Two Punch

Posted by Eric Zeman, Feb 2, 2007 10:47 AM

Just days after ex-CEO Kevin Rollins stepped down amid performance complaints and Michael Dell resumed leadership of his company, it was hit with a class-action shareholder lawsuit. Ouch.

With the company stumbling and losing ground to rivals, Dell ousted its CEO Kevin Rollins earlier this week. Quickly stepping back into the top spot was company founder Michael Dell. Shares were up Thursday on the news, though analysts say his presence won't equate a quick turn around. People seem to be okay with Dell back in charge, but any time a CEO is kicked out it shows that trouble is afoot.

Today's news of a shareholder lawsuit is also less than happy. The complainants allege that the PC maker's management took kick-backs from Intel and used the money to boost Dell's stock price. Shares are down 1.39% today with a little bit of trading time left on the floor.

All in all, not a great week for the PC maker. Let's hope that the lawsuit isn't so distracting that Mr. Dell and his team are unable to pay attention to improving the performance of the company.

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