On Friday it was announced by Dell that the former employees might face civil or administrative action from the US Securities and Exchange Commission. It would be linked to the accounting query that started in August 2005.

David Frink, who is Dell’s spokesman, said that, in relation to the inquiry into Dell’s accounting books, many former employees have been contacted whereas none from the current employers have been called.

"It is possible that other individuals have received or will receive such notices", Dell said in the filing.

On Friday, Dell said that in an SEC filing that Well Notices were received by the former employees signifying that the SEC staff had reached a starting decision for the SEC to instigate a civil or administrative action against the notice’s recipients.

On the issue of revenue recognition and financial reporting, the company is being investigated by the SEC. They are being investigated on the period before 2006 to 2001.

According to Dell, the settlement agreement hasn’t been reached yet whereas they are cooperating with the SEC in the investigation.