Dell to Pay $1 Billion to Settle Suit Over 2018 Stock Conversion

Dell Technologies Inc. agreed to pay $1 billion to settle a shareholder lawsuit relating to a controversial 2018 stock conversion transaction.

The settlement, if approved by the court, will end the dispute over the $23.9 billion conversion of Dell stock in a deal four years ago. In that transaction, Dell founder Michael Dell and other controlling investors including Silver Lake Partners, authorized the issuance of common stock in exchange for tracking shares. The plaintiffs alleged that the transaction was billions of dollars below market value, according to a company filing.

The share conversion was for a class of Dell stock ...