{"id":3210,"date":"2010-07-25T14:35:12","date_gmt":"2010-07-25T18:35:12","guid":{"rendered":"http:\/\/rbach.net\/blog\/?p=3210"},"modified":"2022-12-30T15:24:10","modified_gmt":"2022-12-30T20:24:10","slug":"more-dell-hardware-woes","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/more-dell-hardware-woes\/","title":{"rendered":"More Dell Hardware Woes"},"content":{"rendered":"<p><strong><em>&#8211; Updated 10-08-10 &#8211; <\/em><\/strong>Dell has settled the lawsuit which claimed the computer manufacturer hid computer defects. The <a title=\"New York Times\" href=\"https:\/\/www.nytimes.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>New York Times<\/em><\/a> <a href=\"https:\/\/web.archive.org\/web\/20180202220839\/http:\/\/www.nytimes.com\/2010\/09\/25\/technology\/25dell.html\" target=\"_blank\" rel=\"noopener noreferrer\">reports<\/a> that Dell settled the suit (09-23-2010) brought by Advanced Internet Technologies in Federal District Court in North Carolina. The terms of the tentative settlement were not disclosed.<\/p>\n<p>In the<em> NYT<\/em> article, Clarence E. Briggs III, chief executive for Advanced Internet, in Fayetteville, NC, declined to comment about the settlement, as did his lawyer. David S. Frink, a spokesman for Dell, in Round Rock, TX, told the <em>NYT <\/em> \u201csettling the matter is better and more cost-effective for the company than taking the case to trial.\u201d<\/p>\n<p><strong><em>&#8211; Updated 08-15-10 &#8211; <\/em><\/strong>The <a href=\"https:\/\/www.nytimes.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>New York Times<\/em><\/a> is <a href=\"https:\/\/www.nytimes.com\/2010\/08\/13\/technology\/13dell.html?_r=1&amp;hp\" target=\"_blank\" rel=\"noopener noreferrer\">reporting<\/a> that Advanced Internet Technologies (A.I.T) is accusing Dell of withholding evidence in their lawsuit, including e-mails among its top executives including Michael Dell, in a filing made Thursday. According to the <em>NYT<\/em>, A.I.T. filed a motion in Federal District Court in North Carolina asserting that Dell had deliberately violated a court order by failing to produce documents written by its executives, including the company\u2019s chief executive and founder, Michael S. Dell.<\/p>\n<p>In its filing, A.I.T. asserted that Dell had provided only a snippet of the communications among top executives about the faulty computer problems. The <em>NYT<\/em> says A.I.T. argued that Dell must have had more high-level communications than a \u201ctalking points\u201d memorandum sent to Mr. Dell and Kevin Rollins, then the chief executive.<\/p>\n<p>Larry E. Daniel, a digital forensics expert, has filed an affidavit in the case, stating that the handful of messages Dell provided appeared altered and incomplete according to the NYT article. Mr. Daniel suggested that Dell should provide access to the underlying e-mail files rather than cutting and pasting text.<\/p>\n<p style=\"text-align: center;\">&#8212;<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-3214\" style=\"border: 0pt none; margin-left: 3px; margin-right: 3px;\" title=\"More Dell Hardware Woes\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/2010\/07\/malware1-e1561682054698.jpg?resize=80%2C80&#038;ssl=1\" alt=\"More Dell Hardware Woes\" width=\"80\" height=\"80\" \/>Human error is to blame for the latest <a title=\"Dell\" href=\"http:\/\/www.dell.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Dell<\/a> hardware gaffe. <a title=\"PCWorld\" href=\"https:\/\/www.pcworld.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>PCWorld<\/em><\/a> is <a href=\"http:\/\/www.pcworld.com\/article\/201692\/dell_revamps_hardware_testing_in_wake_of_malware_issue.html\" target=\"_blank\" rel=\"noopener noreferrer\">reporting<\/a> that a sequence of errors led to Dell&#8217;s delivery of motherboards with malware.\u00a0 On 7-21-10, Dell said that some replacement motherboards for <a href=\"http:\/\/www.dell.com\/poweredge\" target=\"_blank\" rel=\"noopener noreferrer\">PowerEdge servers<\/a> may have contained the <a href=\"https:\/\/secure.wikimedia.org\/wikipedia\/en\/wiki\/Spybot_worm\" target=\"_blank\" rel=\"noopener noreferrer\">W32.Spybot<\/a> worm in flash storage. The malware issue affected a limited number of replacement motherboards in four servers, the PowerEdge R310, R410, R510, and T410 models, according to an email from Forrest Norrod, vice president and general manager of server platforms at the Round Rock, Texas firm.<\/p>\n<h3>A sequence of human errors<\/h3>\n<p><a style=\"font-size: 16px; color: #777777; text-decoration-line: none;\" href=\"https:\/\/www.dell.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-3215\" style=\"border: 0pt none;\" title=\"dell_logo\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/2010\/07\/dell_logo-e1561682088207-150x56.jpg?resize=110%2C41&#038;ssl=1\" alt=\"Dell logo\" width=\"110\" height=\"41\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/2010\/07\/dell_logo-e1561682088207.jpg?resize=150%2C56&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/2010\/07\/dell_logo-e1561682088207.jpg?resize=75%2C28&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/2010\/07\/dell_logo-e1561682088207.jpg?w=640&amp;ssl=1 640w\" sizes=\"auto, (max-width: 110px) 100vw, 110px\" \/><\/a>The company confirmed on 7-21-10\u00a0 it is in the process of overhauling its testing procedures to resolve issues before sending hardware to customers. &#8220;There was a sequence of human errors that led to the issue, That being said, we have identified and implemented 16 additional process steps to make sure this doesn&#8217;t happen again,&#8221; said Dell spokesperson Jim Hahn.<\/p>\n<p>Hahn did not provide more details to <em>PCWorld<\/em> on the steps being added to track and resolve such issues. But he said that all affected motherboards had been removed from the service supply chain. Dell is quick to point out that current anti-virus software with updated signatures would flag the malware&#8217;s presence and users would have to be running an unpatched version of Windows 2008 or an earlier version of the OS to be vulnerable.<\/p>\n<p><em>PCWorld<\/em> cites a Dell quality management specialist who wrote in an e-mail that the code was accidentally introduced during the manufacturing process of the server motherboards. &#8220;This flash is the one that holds your BIOS and it can be updated online. If proper security precautions are not in place, the flash chip is every bit as capable of containing a piece of malware as is the hard-disk drive,&#8221; according to Jim Handy, director at Objective Analysis, a semiconductor research company in <em>PCWorld<\/em>.<\/p>\n<p>Simha Sethumadhavan, assistant professor of computer science at Columbia University told<em> PCWorld<\/em> that this incident shows how hardware, either flash or a processor if hacked, can be used as a way to transmit malware. &#8220;All software runs on the hardware. If the processor is hacked then it can subvert all software countermeasures. Since hardware is the root of trust, attacks on hardware are potentially more dangerous.&#8221;<br \/>\n<a title=\"Dell Computers\" href=\"http:\/\/cathrynysl.wordpress.com\/2011\/07\/28\/michael-dell\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-3217 aligncenter\" style=\"border: 0pt none;\" title=\"Michael Dell\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/2010\/07\/mdell-e1561682142450-150x98.gif?resize=259%2C169&#038;ssl=1\" alt=\"\" width=\"259\" height=\"169\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/2010\/07\/mdell-e1561682142450.gif?resize=150%2C98&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/2010\/07\/mdell-e1561682142450.gif?resize=75%2C49&amp;ssl=1 75w\" sizes=\"auto, (max-width: 259px) 100vw, 259px\" \/><\/a><\/p>\n<h3>Other Recent Dell issues include:<\/h3>\n<ul>\n<li>According to the <a title=\"New York Times\" href=\"https:\/\/www.nytimes.com\/2010\/06\/29\/technology\/29dell.html?pagewanted=all\" target=\"_blank\" rel=\"noopener noreferrer\"><em>New York Times<\/em><\/a>, Dell is being sued for shipping at least 11.8 million OptiPlex computers from May 2003 to July 2005 that were at risk of failing because of the faulty capacitors. A study by Dell found that OptiPlex computers affected by the bad capacitors were expected to cause problems up to 97 percent of the time over a three-year period, according to the lawsuit.\u00a0 Making problems worse, Dell replaced faulty motherboards with other faulty motherboards. The <em>NYT<\/em> points out that Dell employees went out of their way to hide these problems. In one e-mail exchange, a Dell worker states, \u201cWe need to avoid all language indicating the boards were bad or had \u2018issues\u2019 per our discussion this morning.\u201d In other documents, Dell salespeople were told, \u201cDon\u2019t bring this to customer\u2019s attention proactively\u201d and \u201cEmphasize uncertainty.\u201d<\/li>\n<li style=\"text-align: left;\">2010 Dell announced it was <a href=\"https:\/\/web.archive.org\/web\/20130104065950\/http:\/\/content.dell.com\/us\/en\/corp\/d\/secure\/2010-6-10-fy11-first-quarter-results.aspx\" target=\"_blank\" rel=\"nofollow noopener\">setting aside<\/a> a $100 million reserve for the first quarter of fiscal 2011, related to a potential settlement with the U.S. Securities and Exchange Commission. The SEC began investigating Dell in 2005 over accusations of misleading auditors and fabricating financial information, which allowed the company to exaggerate its performance. Dell has already restated some of its financial results reported before 2007. it is <a href=\"http:\/\/www.electronista.com\/articles\/10\/07\/22\/michael.dell.pays.4.million.fine\/\" target=\"_blank\" rel=\"noopener noreferrer\">reported<\/a> that founder and CEO Michael Dell faces a separate fine totaling $4 million. \u201cAccuracy and completeness are the touchstones of public company disclosure under the federal securities laws,\u201d said SEC enforcement director Robert Khuzami. &#8220;Michael Dell and other senior Dell executives fell short of that standard repeatedly over many years, and today they are held accountable.&#8221;<\/li>\n<\/ul>\n<ul>\n<li style=\"text-align: left;\">2010 Dell announced that the company and chairman and CEO, Michael Dell, have proposed settlements to the staff of the US Securities and Exchange Commission (SEC) over claims of illegal accounting practices. It is <a href=\"https:\/\/web.archive.org\/web\/20101103065223\/http:\/\/www.electronista.com:80\/articles\/10\/07\/22\/michael.dell.pays.4.million.fine\/\" target=\"_blank\" rel=\"nofollow noopener\">reported<\/a> that the original case and investigation dates back to 2006 when Dell employees misled auditors and manipulated results to meet performance targets.<\/li>\n<\/ul>\n<ul>\n<li style=\"text-align: left;\">2010 A federal appeals court reinstated a class-action lawsuit accusing Dell of selling defective notebook computers. The lawsuit alleges that Dell Inspiron notebooks bought between July 2004 and January 2005 had inadequate cooling systems, power supplies, and motherboards which caused the notebooks to shut down without warning, fail to boot up or deteriorate too quickly. (<a href=\"https:\/\/web.archive.org\/web\/20220925093233\/https:\/\/www.reuters.com\/article\/idUSTRE6144H920100205\" target=\"_blank\" rel=\"noopener noreferrer\">Reuters<\/a>)<\/li>\n<\/ul>\n<ul>\n<li style=\"text-align: left;\">2009<a href=\"http:\/\/bits.blogs.nytimes.com\/2009\/10\/15\/acer-eclipsed-dell-and-apple\/?src=twt&amp;twt=nytimesbits\" target=\"_blank\" rel=\"noopener noreferrer\"><em> The New York Times<\/em><\/a> and IDC confirmed that Acer overtook Dell as the Number 2 PC maker during the third quarter of 2009.<\/li>\n<\/ul>\n<ul>\n<li style=\"text-align: left;\">In 2008 A New York judge concluded that Dell engaged in repeated false and deceptive advertising of its promotional credit financing and warranties according to the<em> <a href=\"https:\/\/www.nytimes.com\/2008\/05\/28\/technology\/28dell.html?_r=1&amp;fta=y\" target=\"_blank\" rel=\"noopener noreferrer\">New York Times<\/a>.<\/em><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><em><a title=\"Ralph Bach\" href=\"https:\/\/rbach.net\/index.php\/new-resume\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ralph Bach<\/a>\u00a0has been in IT long enough to know better and has blogged from his\u00a0<a title=\"Bach Seat\" href=\"https:\/\/rbach.net\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bach Seat<\/a> about IT, careers, and anything else that catches his attention since 2005. You can follow him on <a class=\"broken_link\" href=\"http:\/\/www.linkedin.com\/in\/rb48334\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">LinkedIn<\/a>,\u00a0<a href=\"https:\/\/www.facebook.com\/ralph.bach.14\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/rbach48334\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>. Email the Bach Seat\u00a0<a href=\"mailto:\/\/bach.seat@gmail.com\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dell settled a lawsuit over hidden computer defects brought by Advanced Internet Technologies Terms of the tentative settlement were not disclosed.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[3240,1819,216,217,22,55,1827,21,2489],"class_list":["post-3210","post","type-post","status-publish","format-standard","hentry","category-pc","tag-3240","tag-computer","tag-dell","tag-greed","tag-hardware","tag-legal","tag-optiplex","tag-pc","tag-warrant"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/3210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/comments?post=3210"}],"version-history":[{"count":12,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/3210\/revisions"}],"predecessor-version":[{"id":128984,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/3210\/revisions\/128984"}],"wp:attachment":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/media?parent=3210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/categories?post=3210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/tags?post=3210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}