Dell Service Contract Class Action Settlement

A settlement has been reached in a class action lawsuit about Dell desktop and notebook computers with at-home service contracts sold in California and Arizona. You may be entitled to receive a payment of up to $10 if you meet the requirements of the Dell settlement class.

The Dell class action lawsuit, entitled Fiori et al. v. Dell Inc. et al., alleges Dell and the other defendants engaged in wrongful conduct by failing to disclose that there was a cost for the first-year at-home service contract and by representing that at-home service would occur on the next business day after a customer initially requested service from Dell. Dell denies any wrongdoing, but has agreed to establish a $30 million settlement fund to pay out eligible class members.

To be considered a class member of the Fiori v. Dell class action lawsuit settlement, you must be a consumer in California or Arizona who purchased a Dell notebook or desktop computer with an at-home service contract directly from Dell between January 1, 2000 and July 31, 2010. Class members who submit valid claims postmarked by the deadline of May 20, 2011 will receive either a $10, $8 or $4 cash benefit from the Dell service contract class action settlement. Those who wish to exclude themselves from the class action settlement must submit their request by February 22, 2011.

In addition to cash payments, the Dell service contract settlement will require Dell to implement the following changes to their sales practices for at least two years:

(I) Invoices and acknowledgements sent to consumers will not list $0 next to Service Contracts that are sold with the computer system;

(II) The price of a Service Contract sold with a computer shall be disclosed to consumers in the invoice, acknowledgement, Service Contract, or accompanying documentation; and

(III) Dell will disclose pricing information for Service Contracts for its computers on its website and by telephone.