HP settles shareholder suit on Autonomy takeover

Jul 01, 2014

Computer giant Hewlett-Packard said it has reached a settlement in a shareholder lawsuit over its 2011 acquisition of British software firm Autonomy.

The $10-billion deal led to the ouster of Leo Apotheker as chief executive of the US tech giant, and HP subsequently said it had discovered massive accounting irregularities which overvalued the British firm.

HP said in a statement late Monday it had settled the case with law firms representing shareholders, without disclosing any amounts to be paid. The settlement is subject to court approval.

Under the terms of the deal, HP said the plaintiffs "will assist HP in bringing claims" against Michael Lynch, Autonomy's former officer, and other former executives at the British company.

HP in 2012 asked US and British authorities to probe accounting issues at Autonomy as it reported a $5.5 billion writeoff in the value of the unit.

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."

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

Explore further: Ford recalls 432K cars because of software problem

Related Stories

US probes HP's Autonomy fraud allegations

Dec 28, 2012

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.

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. ...

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.

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's Autonomy claims supported by Air Force document

Jan 07, 2014

Hewlett-Packard Co.'s claim that it was hoodwinked into paying too much when it bought British software company Autonomy in 2011 is supported by newly released documents from Air Force investigators.

Recommended for you

Barnes & Noble names Sears Canada CEO for retail business

13 hours ago

Barnes & Noble, which is splitting into two companies next month, named Sears Canada CEO Ronald Boire to lead its retail operations and said company CEO Michael Huseby will become executive chairman its educational wing.

Hewlett-Packard moves forward with plan to split in two

Jul 01, 2015

Hewlett-Packard is moving forward with plans to split into two companies, filing paperwork to create a new entity that will sell commercial technology, while a separate spinoff will sell personal computers and printers.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.