Hewlett-Packard Company (HPQ) reportedly settles Autonomy lawsuit
Hewlett-Packard Company (NYSE:HPQ) will be announcing a settlement on Monday of 3 shareholder lawsuits over its $11 billion acquisition of Autonomy, according to Reuters.
HP is asking shareholders to help it pursue some sort of action against Autonomy surprisingly. The shareholders will agree to drop all claims against HP executives and board members, including HP CEO Meg Whitman. However, they will be free to pursue former officials at Autonomy. The shareholders’ attorneys will receive fees for “helping HP pursue any further claims.”
Within one year of buying Autonomy for $11 billion, HP wrote off $8.8 billion and claims that Autonomy had improperly inflated its revenues and margins to around $5 billion. HP said that Autonomy committed fraud. Former Autonomy CEO Michael Lynch denied wrongdoing and said that it was HP’s mismanagement of Autonomy after the acquisition to cause the problems.
“HP is in serious discussion to settle the shareholder derivative litigation related to Autonomy, but no final deal has been reached yet,” said an HP spokesperson.