Menu
Hewlett-Packard close to settling shareholder lawsuit over Autonomy

Hewlett-Packard close to settling shareholder lawsuit over Autonomy

The lawsuit centers on accounting irregularities that led to an $8.8 billion writeoff

Hewlett-Packard is in "serious" talks about settling a lawsuit brought by shareholders over its troubled acquisition of infrastructure software vendor Autonomy.

"HP is in serious discussions to settle the shareholder derivative litigation related to Autonomy, but no final deal has been reached yet," HP said in a message posted on its website.

In October 2011, HP spent more than US$10 billion to acquire Autonomy, which develops software for searching and managing information. But after discovering what it called serious accounting irregularities, HP wrote off $8.8 billion of the purchase price.

Shareholders filed suit in 2012, alleging that HP "knew or should have known" that corporate governance firms, auditors and other parties had called Autonomy's market value into question due to concerns about its accounting methods.

Autonomy founder and CEO Mike Lynch, who was ousted from HP in May 2012, has vigorously denied any wrongdoing, saying the company was aware of Autonomy's accounting practices before the acquisition, and has engaged in a smear campaign against Lynch and others.

HP bought Autonomy under the leadership of its former CEO, Leo Apotheker, who was replaced by current CEO Meg Whitman after a short and rocky run in the job.

Lynch responded to reports of the lawsuit settlement in a statement posted on a website he created to mount a public defense against HP's claims.

"We continue to reject HP's allegations, and note that over recent months a number of documents have emerged that prove Meg Whitman misled her shareholders," the statement reads. "We hope this matter will now move beyond a smear campaign based on selective disclosure and HP will finally give a full explanation."

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags AutonomylegalCivil lawsuitsMeg WhitmansoftwareLeo ApothekerMike LynchHewlett-Packard

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments