HP Settles With Autonomy
Hewlett-Packard confirmed today that it has entered into a settlement agreement with PGGM Vermogensbeheer B.V., the lead plaintiff in the securities class action arising from the impairment charge taken by HP following its acquisition of Autonomy.
HP said that while it believes the action has no merit, "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 $100 million to a settlement fund that will be used to compensate persons who purchased HP shares during the period from August 19, 2011 through November 20, 2012. HP and its current and former officers, directors, and advisors will be released from any Autonomy-related securities claims as part of the settlement.
The settled lawsuit is In re HP Securities Litigation, C-12-5980, which is pending in the United States District Court for the Northern District of California. The settlement is subject to court approval.
HP acquired Autonomy in 2011 for $11.7 billion. The following year, HP announced the $8.8 million impairment charge as a result of "accounting improprieties, misrepresentations and disclosure failures" in Autonomys financial statements. HP shareholders filed suit that same year.
Under the terms of the settlement, HP's insurance will pay $100 million to a settlement fund that will be used to compensate persons who purchased HP shares during the period from August 19, 2011 through November 20, 2012. HP and its current and former officers, directors, and advisors will be released from any Autonomy-related securities claims as part of the settlement.
The settled lawsuit is In re HP Securities Litigation, C-12-5980, which is pending in the United States District Court for the Northern District of California. The settlement is subject to court approval.
HP acquired Autonomy in 2011 for $11.7 billion. The following year, HP announced the $8.8 million impairment charge as a result of "accounting improprieties, misrepresentations and disclosure failures" in Autonomys financial statements. HP shareholders filed suit that same year.
