Dell Inc. (NASDAQ: DELL) is facing an investor lawsuit alleging that it improperly accounted for hundreds of millions of dollars in payments from Intel.

The suit alleges that Dell received millions of dollars in secret kickback payments from its partner Intel Inc. as bonuses to exclusively use processors from the firm. Investors claimed that the computer maker failed to disclose that income

A number of executives were named in the lawsuit, including founder and CEO Michael Dell and former CEO Kevin Rollins. Additionally, company accountant PricewaterhouseCoopers has been named as a defendant. The suit was filed in U.S. District Court in Austin, Texas.

Intel denied the claims, calling it a "rehash' of claims made by rival AMD in the past.

"We've reviewed the allegations and at first glance, it appears the allegations with respect to Intel were completely made up,' according to Intel spokes person Chuck Mulloy.

Representatives from Dell did not immediately respond to inquiries.

The suit was filed in U.S. District Court in Austin, Texas.

Shares of Dell closed down 28 cents, or 1.18 percent, to $23.52 on the Nasdaq Stock Market.

Michael Dell Dell Intel