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NY State Supreme Court Rules Against Dell

5/29/2008 04:31:00 PM Eastern

New York — New York State Supreme Court Justice Joseph C. Teresi ruled this week that Dell and its affiliate Dell Financial Services engaged in fraud, false advertising, deceptive business practices and abusive dept collection.

The trial was inspired by a lawsuit filed last May by the Office of the New York State Attorney General Andrew M. Cuomo. The case accused Dell and its customer-financing affiliate Dell Financial Services (DFS) of taking advantage of customers by using intentionally misleading financing promotions, of failing to provide adequate technical support services and of a variety of other deceptive business practices.

A release from the attorney general’s office said, “The court will hold further proceedings to determine how much restitution Dell will have to pay to its customers and the amount of profits Dell unlawfully earned that must be forfeited to the State.”

Commenting on the decision, Cuomo said, “For too long at Dell the promise of customer service was a bait and switch that left thousands of people paying for essentially no service at all. We have won an important victory that will force Dell to live up to its responsibilities and pay back its customers for profits that were pocketed but not deserved. This decision sends and important message that all corporations will be held accountable for the promises they make to consumers.”

TWICE is awaiting comment from Dell.

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