Thursday, December 7, 2023

Dell & Apple to Face Lawsuit After the Company Failed to Provide paid-for Services

Dell LLC has reportedly been ordered to pay almost $11 million to a local integrator by a Moscow arbitration court after failing to provide paid services.

While Dell refused to provide technical support to VMware as previously promised, prompting a lawsuit by IT systems integrator Talmer early last month.

Until March 1, 2022, it was Dell’s responsibility to resell VMware services in Russia. Dell had been reportedly paying the Moscow-based firm for these services before they appeared on the market, but because they never came through, this represented a violation of the contract.

A number of companies such as Dell and VMware were forced to curtail their operations as a result of sanctions imposed by the Western world and the public sentiment against Russia.

This has led to the Russian courts seizing a total of 778,526,223 rubles from local bank accounts due to sanctions imposed. As of the time of this writing, the value of this amount is approximately $10,900,000.

Apple & Netflix also sued

After a Russian law firm sued Apple in a similar manner for breach of contract, Apple was faced with nearly $1.290 million in damages after it filed a class-action lawsuit for breach of contract.

Apple Pay allegedly took its payment service from the country in a unilateral move, according to the lawsuit. Apple’s decision has reduced the value of iPhones and other Apple products significantly in Russia due to this move.

Here’s what the Konstantin Lukoyanov, senior partner at the Chernyshovstated:-

“The judicial practice of class actions in Russia has not yet been worked out. The precedents that are now being created will actually shape it. Therefore, it is very important to go to court with a well-developed legal position.” 

“Careless actions in the preparation of claims and the desire to be the first to come running ultimately limit the ability of plaintiffs to receive fair compensation. The presentation of minimum amounts for collection forms a negative judicial practice and deprives the institution of class actions of any meaning.”

A class-action lawsuit was filed in April by the same law office against Netflix for the same legal reasons of breach of terms of service. This caused them to seek an $860,000 compensation for this action, which is around 60 million rubles.

Several legal experts in the western world agree that Russia has entered uncharted waters because of the unprecedented sanctions. 

Therefore, it became very difficult for companies to plan their moves and assess the cost of leaving the Russian market as a result.

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