A New York State Supreme Court said Tuesday that Dell and its financial services arm misled customers.
Judge Joseph Teresi ruled that the world's second-largest PC maker engaged in fraud, false advertising, deceptive business, and abusive debt collection practices. The company was accused by the state of New York of offering no-interest or no-payment financing options for its products while Dell Financial Services would fail to honor them.
New York Attorney General Andrew Cuomo filed the suit in May 2007, asking for an injunction against the company's business practices and monetary damages for affected customers.
Further court proceedings will need to be held to determine what those damages will be.
Dell told Reuters it "disagrees" with the ruling. "We are confident that when the proceedings are finally completed, the court will determine that only a relatively small number of customers have been affected," according to the company's statement.