HP to Pay $100 Million to Settle Autonomy Shareholder Lawsuit
Hewlett-Packard reports that it’s entered into a settlement agreement with PGGM Vermogensbeheer B.V., the lead plaintiff in a securities class-action lawsuit involving the impairment charge taken by HP following its acquisition of software-maker Autonomy. HP states that it believes the lawsuit has no merit, but says it’s in its best interests to settle the lawsuit., as it says 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 people who purchased HP shares during the August 19, 2011 – November 20, 2012 period. Also under the settlement, HP and its current and former officers, directors, and advisors will be released from any Autonomy-related securities claims.
In October 2011, HP purchased Autonomy for $10 billion, although the company only had annual revenue of $870 million.
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, and is subject to court approval.
- August 2014: HP Accuses Autonomy Founder Michael Lynch of Fraud, Files Lawsuit
- January 2014: U.K. Fraud Office Ends HP Autonomy Investigation, but Investigation Continues in U.S.
- May 2013: Hewlett-Packard Faces $1 Billion Lawsuit from Shareholders over Autonomy Deal
- November 2012: HP Charges Autonomy Management Willfully Misled Potential Buyers, Falsely Inflated Value of Autonomy
- October 2011: HP Completes Acquisition of Autonomy, Will Boost Enterprise Software, Cloud Offerings