HP hit with civil securities lawsuit over Autonomy deal
SAN FRANCISCO (Reuters) - Hewlett-Packard Co (HPQ.N) was sued on Monday by an investor who claimed the company knew statements about its Autonomy acquisition were misleading and led the stock to fall, according to lawyers representing the plaintiff.
The proposed class action lawsuit was filed in a San Francisco federal court.
HP dropped a bombshell last Tuesday with an $8.8 billion write-down on its acquisition of British software firm Autonomy, saying the company inflated sales with improper accounting. Autonomy co-founder Mike Lynch has denied any wrongdoing.
HP bought Autonomy for a hefty $11.1 billion last year. HP has said it alerted regulators on both sides of the Atlantic.
The lawsuit, one of the first to be filed by investors on the Autonomy mess, said HP hid the fact it gained control of Autonomy based on financial statements that could not be relied upon. It also said that HP had not revealed to investors that it tried to undo the Autonomy agreement before it closed because of the accounting issues. (Reporting By Dan Levine and Poornima Gupta; Editing by Gerald E. McCormick and Andre Grenon)
- Tweet this
- Share this
- Digg this
- TIMELINE-The search for missing Malaysian jet
- UPDATE 3-Republican Party wins Florida congressional seat in special election
- Wild theories fill void left by missing Malaysian plane
- Malaysia military source says missing jet veered to west
- Malaysia air force denies tracking missing jet to Strait of Malacca
Bitcoin can expose people to significant losses, fraud and theft, and the lure of a potential quick profit should not blind investors to the virtual currency's significant risks, a brokerage industry watchdog warned on Tuesday. Full Article