SEATTLE (AP) — Dell Inc. says it has agreed to a legal settlement with Hawaii and other states that claimed the computer company made misleading financing and service offers to PC buyers.

Dell will pay $3.85 million to at least 46 states participating in the settlement. A portion of the money will be used to reimburse states for legal costs.

Shares of Dell dropped 47 cents, or 4.2 percent, to close at $10.65.

Attorneys general from Connecticut and Washington are representing several states. They approached Dell with their concerns in the middle of 2008.

In an interview, Connecticut Attorney General Richard Blumenthal said that an "epidemic-like wave of complaints" about Dell's practices prompted him to contact his counterparts from Hawaii to Maine.