HP reaches agreement over Autonomy litigation
28 Jun 2014
Hewlett-Packard Co and attorneys representing litigating shareholders had reached an agreement over settling litigation in the matter of the company's troubled $11.1-billion acquisition of British software company Autonomy Corp, Reuters reported citing a source familiar with the negotiations.
The terms of the settlement involving three lawsuit would see the attorneys for the shareholders drop all claims against HP's current and former executives, including CEO Meg Whitman, board members and advisers to the company, according to the source.
There would be exceptions, however and former officials at Autonomy would face legal action.
As part of the agreement, the shareholders' attorneys would assist HP in pursuing claims against Autonomy's co-founder and former CEO Michael Lynch, its former chief financial officer Sushovan Hussain, and potentially others related to Autonomy, according to the source.
HP, which bought the software company for over $10 billion in 2011, after conducting due diligence, but a year later took an $8.8-billion writedown alleging that it had been misled into paying 64 per cent above Autonomy's market value (See: HP takes $8.8 bn charge on Autonomy acquisition).
