Menu
Judge nixes HP's settlement of shareholder suit over Autonomy

Judge nixes HP's settlement of shareholder suit over Autonomy

HP's proposed settlement to shareholders could let the company of the hook for far too much, a judge ruled

The settlement between Hewlett-Packard and shareholders of a lawsuit centering on the 2012 botched Autonomy acquisition hit a snag late Friday, when a federal judge rejected HP's proposal for being too broad, potentially releasing the company from potential liabilities beyond Autonomy.

"The shareholders appear to be relinquishing a whole universe of potential claims regarding HP governance and practices with no factual predicates that overlap the Autonomy acquisition," wrote Charles Breyer, judge for the U.S. District Court for Northern California.

HP lawyers, while expressing disappointment over the decision, pointed out that the judge's ruling also presumes a lack of culpability on the part of HP executives.

"While HP is disappointed the Court did not approve the settlement as submitted, the Court recognized that a settlement releasing the HP directors and officers from Autonomy-related claims 'represents a fair and reasonable resolution of the litigation,'" the HP statement read. "HP remains committed to holding the architects of the Autonomy fraud accountable."

The shareholder litigation came about as a response to HP's $11.7 billion 2011 acquisition of Autonomy, which resulted in a $8.8 billion accounting write-down the following year. A consulting firm working on behalf of HP subsequently found that Autonomy's revenue had been misrepresented and, as a result, HP overpaid for the company.

The plaintiffs and HP have been working on a settlement through this year. However, the court expressed concerned that HP's settlement released it from culpability around a wide range of activities beyond the scope of the Autonomy acquisition, including matters relating to "company's share repurchase program, the entire history of the company's acquisition strategy, the foreign-loan program, executive compensation and succession planning," according to court documents.

Earlier this month, Autonomy founder Mike Lynch argued that Autonomy did not mislead HP about the potential value of the company. He said that the discrepancy in Autonomy's value came about as a result of a change in HP's accounting policies.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags legalHewlett-PackardCivil lawsuits

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments