Industryweek 6963 Hp 1

HP Settles Shareholder Suit on Autonomy Takeover

July 1, 2014
Under the terms of the deal, HP said the plaintiffs "will assist HP in bringing claims" against Michael Lynch, Autonomy's former chief executive officer, and other former executives at the British company.

SAN FRANCISCO -- Hewlett-Packard (IW 1000/28) 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 tech giant, and HP subsequently said it had discovered massive accounting irregularities which overvalued the British firm.

HP said 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 chief executive 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.

Copyright Agence France-Presse, 2014

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!