Dell Settles Capacitor Lawsuit

Oct 12, 2010 - LegalZoom News Sources
Dell Settles Capacitor Lawsuit

Dell Computer has settled a long-running lawsuit over a defect that affected nearly 12 million machines, Consumer Affairs reports.

The lawsuit, which was originally filed by Advanced Internet Technologies (AIT) in 2007, alleged that Dell knew that at least 11.8 million of its desktop computers had defects, but decided to ship them anyway and told employees to not discuss the issue.

The suit dealt with Dell OptiPlex models that had capacitors manufactured by Nichicon, a Japanese company. The models in question were shipped to customers between May 2003 and July 2005, according to the lawsuit.

While the capacitors, which sometimes leaked, were also used by Apple and Hewlett Packard, Dell was by far the company that was affected the most. An internal memorandum at Dell predicted that 97 percent of the machines with the capacitors would experience problems within a three-year period, according to the news provider.

The settlement comes after much evidence had been mounted against Dell, including a June New York Times article with documents that demonstrated the company had been aware of the issue long before the lawsuit was filed, the news source said.