• MSNBC/AP, Wednesday, May 16, 2007 11:30 AM

New York Attorney General Andrew Cuomo filed a lawsuit in Albany County Supreme Court yesterday claiming that Dell and Dell Financial Services LP have engaged in fraud, false advertising and deceptive business practices, according to a report in The Wall Street Journal that could not be immediately confirmed.

The lawsuit accuses Dell of attracting customers with misleading financing terms, rebates and other benefits, but ultimately sticking them with high interest on lines of credit. It also claims that Dell avoids giving customers rebates through various tactics and fails to honor warranties and service contracts. Dell spokesman Bob Pearson responds that the company's conduct has been honorable and that the allegations are based upon a small fraction of transactions.

Under the direction of founder Michael Dell, the company has been trying to orchestrate a turnaround plan to improve customer service and combat competitors that have eaten into its market share with low-cost, low-profit PCs.

Read the whole story at MSNBC/AP »