Dell Reaches $1B Settlement Involving Vmware, Goldman Sachs

  • Dell Technologies Inc DELL reached a $1 billion settlement over the alleged short-changing of some investors in a $24 billion transaction where it returned to being a publicly traded company.
  • Dell said the settlement is subject to court approval and will reflect in its third-quarter results. 
  • It said insurers might pay some of the settlement amounts.
  • The December 2018 transaction related to Dell's interest in software maker Vmware, Inc VMW, Reuters reports.
  • Dell paid $14 billion in cash and issued 149.4 million Class C shares in exchange for all outstanding Class V shares.
  • The Class V shares holders claimed they conducted the transaction at billions of dollars below fair value.
  • The settlement also covers claims against Goldman Sachs Group, Inc GS, a defendant in the lawsuit.
  • Dell held $7.1 billion in cash and equivalents as of July 29.
  • Price Action: DELL shares are trading lower by 2.76% at $41.18 on the last check Wednesday.
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