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Monday, June 28, 2010

In Suit Over Faulty Computers, Window to Dell’s Fall - NYTimes.com

In Suit Over Faulty Computers, Window to Dell’s Fall - NYTimes.com

After the math department at the University of Texas noticed some of its Dell computers failing, Dell examined the machines. The company came up with a unusual reason for the computers’ demise: the school had overtaxed the machines by making them perform difficult math calculations.

Dell, however, had actually sent the university, in Austin, desktop PCs riddled with faulty electrical components that were leaking chemicals. Dell sold millions of these computers from 2003 to 2005 to major companies like Wal-Mart and Wells Fargo, institutions like the Mayo Clinic and small businesses.

“The funny thing was that every one of them went bad at the same time,” said Greg Barry, the president of PointSolve, a technology services company near Philadelphia that had bought dozens. “It’s unheard-of, but Dell didn’t seem to recognize this as a problem at the time.”

Documents recently unsealed in a three-year-old lawsuit against Dell show that the company’s employees were actually aware that the computers were likely to break. Still, the employees tried to play down the problem to customers and allowed customers to rely on trouble-prone machines, putting their businesses at risk. Even the firm defending Dell in the lawsuit was affected when Dell balked at fixing 1,000 suspect computers, according to e-mail messages revealed in the dispute. More...

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