US probes HP's Autonomy fraud allegations

Dec 28, 2012
Computer maker Hewlett-Packard headquarters is seen in Diegem on January 12, 2010. US authorities are probing allegations by Hewlett-Packard that a British software firm it bought out had fraudulent accounts, the US tech giant said in its annual report released.

US authorities are probing allegations by Hewlett-Packard that a British software firm it bought out had fraudulent accounts, the US tech giant said in its annual report released Thursday.

On November 20, HP reported a writedown of $8.8 billion, including more than $5 billion it attributed to inflated data from , acquired by HP in 2011 for more than $10 billion.

The Californian demanded US and British authorities investigate Autonomy, saying "accounting improprieties" before the acquisition led to an "overvalued" acquisition price, which forced HP to take the huge writedown in value.

"On November 21, 2012, representatives of the US Department of Justice advised HP that they had opened an investigation relating to Autonomy," HP said, in its report filed with the US .

HP said it had also provided information to the UK Serious Fraud Office and the US Securities amd Exchange Commission "related to the accounting improprieties, disclosure failures and at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy."

"HP is cooperating with the three investigating agencies," it said.

HP's call for a probe came in November as it reported a $6.9 billion , of which $5.5 billion was linked to Autonomy and the rest to the slumping value of HP's own .

HP said at the time it had launched an internal investigation "after a senior member of Autonomy's leadership team came forward."

As a result, HP said it believed "that Autonomy was substantially overvalued at the time of its acquisition."

Mike Lynch, founder of the software group Autonomy, has said that members of his management team are being unjustly blamed for the writedown.

Explore further: WhatsApp says it now has half billion users

add to favorites email to friend print save as pdf

Related Stories

Barbs fly between HP and former exec on probe

Nov 27, 2012

Hewlett-Packard and the former head of a British software firm it acquired traded barbs Tuesday over the US firm's allegations of deliberate accounting tricks ahead of a massive writedown.

Deloitte denies HP claim on audit missteps

Nov 21, 2012

The audit and consulting firm Deloitte on Wednesday rejected claims by US tech giant Hewlett-Packard that it missed "accounting improprieties" at the British firm Autonomy ahead of a takeover. ...

HP extends offer for Autonomy

Sep 13, 2011

US computer giant Hewlett-Packard said on Tuesday it is extending its $10.24 billion offer for Autonomy as it seeks to bring more shareholders of the British software company on board.

HP gains control of Autonomy

Oct 03, 2011

Hewlett-Packard said Monday that it has closed its $10.24 billion purchase of British software company Autonomy, a deal which contributed to the downfall of former HP chief executive Leo Apotheker.

HP investor sues company for handling of 2 deals

Nov 27, 2012

Hewlett-Packard now has a legal headache to compound its misery as the company tries to recover from a series of setbacks that have hammered its stock price and raised doubts about its future.

Recommended for you

Amazon Prime wins streaming deal with HBO

10 hours ago

Amazon scored a deal Wednesday to distribute old shows from premium cable TV channel HBO to its monthly Prime subscribers, landing a blow on rival Netflix in the streaming video battle.

LinkedIn to anchor new San Francisco high-rise

20 hours ago

San Francisco Mayor Ed Lee says the professional networking site LinkedIn will expand its presence in the city by anchoring a high-rise office building under construction.

User comments : 0

More news stories

Is nuclear power the only way to avoid geoengineering?

"I think one can argue that if we were to follow a strong nuclear energy pathway—as well as doing everything else that we can—then we can solve the climate problem without doing geoengineering." So says Tom Wigley, one ...

US urged to drop India WTO case on solar

Environmentalists Wednesday urged the United States to drop plans to haul India to the WTO to open its solar market, saying the action would hurt the fight against climate change.