HP settles shareholder suit on Autonomy

HP logo.
HP logo.
San Francisco - Computer giant Hewlett-Packard said it has reached a settlement in a shareholder lawsuit over its 2011 acquisition of British software firm Autonomy.

The $10bn deal led to the ouster of Leo Apotheker as chief executive of the US tech giant, and HP subsequently said it had discovered massive accounting irregularities which overvalued the British firm.

HP said in a statement late 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 $5.5bn write-off 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 write-down.
ZAR/USD
16.55
(+0.78)
ZAR/GBP
20.92
(+0.37)
ZAR/EUR
18.93
(+0.67)
ZAR/AUD
11.62
(+0.40)
ZAR/JPY
0.16
(+0.47)
Gold
1807.86
(-0.06)
Silver
19.25
(-0.03)
Platinum
830.00
(+0.18)
Brent Crude
43.06
(+0.42)
Palladium
1963.00
(+0.31)
All Share
56374.05
(+1.52)
Top 40
52048.69
(+1.59)
Financial 15
10697.88
(+1.61)
Industrial 25
76413.30
(+1.19)
Resource 10
54358.32
(+2.14)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 2134 votes
I am taking a hit, but should be able to recover in the next year
23% - 2733 votes
My finances have been devastated
35% - 4143 votes
It's still too early to know what the full effect will be
25% - 2966 votes
Vote