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HP will pay USD 100 mln to settle Autonomy securities case

2015-06-09 15:02:00| Telecompaper Headlines

(Telecompaper) Hewlett-Packard said it will pay USD 100 million to settle a securities lawsuit related to its acquisition of Autonomy. HP bought Autonomy for USD 11 billion in 2011 and then wrote down USD 8.8 billion related to the deal. The company has accused Autonomy of improperly reporting USD 709 million in revenue over 2.5 years before the purchase. Dutch pension-fund manager PGGM Vermogensbeheer, the plaintiff in the securities case, led a lawsuit on behalf of investors hurt by the write-down. Under the terms of the settlement, HP's insurance will pay USD 100 million to a settlement fund to anyone who bought HP shares from 19 August 2011 to 20 November 2012, the dates between the announced deal and the write-down. There will be no individual contribution to the settlement. As a result, all HP members will be released from any securities claims related to Autonomy. The settlement is subject to court approval. HP said that while it believes the suit has no merit, it is better to settle than to pursued a burdensome and protracted litigation process. H-P sued Autonomy's former chief executive Michael Lynch and former CFO Sushovan Hussain on 30 March, seeking USD 5.1 billion in damages.

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