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Dell and the Apple Rule

Corporate crime primer:

The Apple Rule provides for an exception from corporate criminal liability when a popular business executive is accused of, or presides over a company that is accused of, misconduct. "Popular" is defined as "liked by journalists." In the event of allegations of criminal misconduct touching a "popular" business executive, said executive or his company may avoid trouble by aiming the investigation toward an underling.

By contrast, when an "unpopular" business executive (i.e., unliked by business journalists) is associated with criminal misconduct, the "Enron rule" applies. This means that the executive becomes the target of the criminal investigation. Now the underling may sell his or her testimony against said executive to prosecutors in exchange for favorable treatment on sentencing in order to enable the prosecutors to get their man.

Tom Kirkendall asks whether the Apple Rule or the Enron Rule will be applied to Michael Dell.

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» The Apple Rule is working for Dell from Houston's Clear Thinkers
When Michael Dell jumped back into hot CEO seat at Austin-based Dell Inc in February, this post wondered whether he and the company would benefit from application of what Larry Ribstein has brilliantly coined "the Apple Rule." Well, it looks... [Read More]

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