HP will pay $US100 million to settle Autonomy-related lawsuit

The action has 'no merit' HP maintains

The front sign outside HP's headquarters

The front sign outside HP's headquarters

Credit: HP

The ongoing saga surrounding HP's ill-fated Autonomy acquisition continued on Tuesday with the company's announcement that it will pay $US100 million in a settlement agreement with PGGM Vermogensbeheer B.V.

Dutch PGGM Vermogensbeheer is the lead plaintiff in the securities class action arising from the impairment charge taken by HP following its acquisition of Autonomy.

HP acquired the British software maker in 2011 for $US11.7 billion. The following year, HP announced the $US8.8 million impairment charge as a result of what it called "accounting improprieties, misrepresentations and disclosure failures" in Autonomy's financial statements. HP shareholders filed suit that same year.

An investigation by the UK's Serious Fraud Office was dropped earlier this year, but HP went on nevertheless to sue Mike Lynch and Sushovan Hussain, Autonomy's former CEO and CFO, for roughly $US5 billion.

Regarding the current settlement, "HP believes the action has no merit," the company said, but "it is desirable and beneficial to HP and its shareholders to resolve settle the case as further litigation would be burdensome and protracted."

Under the terms of the settlement, HP's insurance will pay $US100 million to a settlement fund that will be used to compensate shareholders who purchased HP shares between August 19, 2011, and November 20, 2012.

No individual is contributing to the settlement, which remains subject to court approval, HP said.

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 HPbusiness issueslegalAutonomy

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Katherine Noyes

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Cate Bacon

Aruba Instant On AP11D

The strength of the Aruba Instant On AP11D is that the design and feature set support the modern, flexible, and mobile way of working.

Dr Prabigya Shiwakoti

Aruba Instant On AP11D

Aruba backs the AP11D up with a two-year warranty and 24/7 phone support.

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?