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

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments