Cuomo wins lawsuit against Dell Computers

Chris Rizo May 27, 2008, 9:33pm

Andrew Cuomo

ALBANY, N.Y. (Legal Newsline)-New York Attorney General Andrew Cuomo won a lawsuit Tuesday against Dell Inc., one of the world's largest computer companies.

Dell Computers and its financial services branch misled customers, an Albany County judge ruled, saying the computer company failed to provide timely repairs to products under warranty.

The Round Rock, Texas-based company also failed to pay customers promised and advertised rebates, State Supreme Court Justice Joseph Teresi said.

He ruled that Dell "engaged in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions and the terms of warranties, fraudulent, misleading and deceptive practices in credit financing and failure to provide warranty service and rebates."

In his lawsuit, the attorney general claimed that Dell attracted buyers by offering no-interest financing rebates that were nearly impossible to qualify for, and then switched the terms to a high-interest loan.

Tuesday's ruling bars Dell and Dell Financial Services LP from engaging in the practices cited in Cuomo's lawsuit.

The amount of restitution Dell will pay customers will be decided in a future ruling.

"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," Cuomo said in a statement.

"This decision sends an important message that all corporations will be held accountable for the promises they make to consumers," the Democrat added.

From Legal Newsline: Reach reporter Chris Rizo by e-mail at

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