Hewlett-Packard Company (HPQ) to pay $57M to settle shareholder lawsuit

Posted Apr 1, 2014

Hewlett-Packard Company (NYSE:HPQ) has made an agreement to pay $57 million to settle a lawsuit where the PC company was accused of allegedly defrauding shareholders. The lawsuit was filed after former CEO Leo Apotheker told investors in August 2011 that the company is planning to refocus the company on business services and products.

Apotheker also said that the company was going to shut down webOS, which was picked up after Palm Inc. was acquired in 2010. Apotheker oversaw the $11.1 billion acquisition of British software company Autonomy Plc. The HP TouchPad was shut down after spending about 7 weeks on the market.

“HP has reached a mutually acceptable resolution through a mediated settlement,” stated HP spokeswoman Sarah Pompei.

HP is going to deposit $57 million in an interest-bearing escrow account within 20 days of getting approved by U.S. District Judge Andrew Guilford in Santa Ana, California.

The lead plaintiffs in this case include the Arkansas Teacher Retirement System, the Labourers’ Pension Fund of Central and Eastern Canada (Oakville, Ontario), the LIUNA National Pension Fund and LIUNA Staff & Affiliates Pension Fund (Washington D.C.) and Union Asset Management Holding AG (Frankfurt, Germany).

The case was filed under Gammel et al v. Hewlett-Packard Co et al, U.S. District Court, Central District of California, No. 11-01404.

[Source: Reuters]