HP hit with civil securities lawsuit over Autonomy deal

SAN FRANCISCO Tue Nov 27, 2012 3:08am IST

A man walks past the Hewlett Packard logo at its French headquarters in Issy le Moulineaux, western Paris, in this September 16, 2005 file photograph. REUTERS/Charles Platiau/Files

A man walks past the Hewlett Packard logo at its French headquarters in Issy le Moulineaux, western Paris, in this September 16, 2005 file photograph.

Credit: Reuters/Charles Platiau/Files

Related Topics

Stocks

   

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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Falling Profit

Reuters Showcase

Out Of The Closet

Out Of The Closet

Apple's Tim Cook says "proud to be gay"  Full Article 

Rising Star

Rising Star

Xiaomi moves into third place in global smartphone war.  Full Article 

Microsoft Band

Microsoft Band

Microsoft launches wearable fitness device for $199.  Full Article 

Fraud Cases

Fraud Cases

NY recovers $18 million using warrants for Facebook accounts.  Full Article 

Digital Wallets

Digital Wallets

Wal-Mart and allies in face-off with Apple Pay over mobile payments.  Full Article 

AeroMobil 3.0

AeroMobil 3.0

Flying car prototype takes to the skies.  Video 

Smart Device

Smart Device

Nintendo to develop "quality of life" device to track sleep, fatigue - CEO.  Full Article 

Using Twitter data

Using Twitter data

IBM, Twitter to partner on business data analytics.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage