Boston, MA 06/30/2014 (wallstreetpr) – Hewlett-Packard Company (NYSE:HPQ) along with the attorney representatives of shareholders agreed to reconcile the litigation concerning $11.1 billion acquisition of Autonomy Corp, the British software company.
The Terms of Reconcilement
As per the terms of reconcilement, which involves a total of three lawsuits, the shareholders’ attorneys agreed that they would drop all the charges against the present and former executives of HP, board members as well as the advisers of HP. The only ones to still face the charges would be the former officials belonging to Autonomy Corp.
As a part of this agreed settlement, the attorneys of the shareholders will help the company in trailing the claims against the Co-Founder as well as Former CEO of Autonomy, Michael Lynch; the Former Chief Financial Officer, Sushovan Hussain as well as a few others associated with Autonomy.
The settlement might be announced officially on June 30, 2014.
The Background
In November 2012, Hewlett-Packard Company (NYSE:HPQ) had taken $8.8 billion impairment charge for the acquisition of Autonomy. The company said that out of this, $5 billion was a result of serious accounting improprieties, disclosure failure as well as misrepresentation. In the recent past, it is observed by the analysts, that considering the size of loss as well as the pace at which it all happened, this was the most disastrous deal by any leading company. People closely associated with the HP Investigation said that the prospects and results of Autonomy were “shown” to be much better than actually.
Autonomy CEO Response
In the meanwhile, the Co-Founder as well as Former CEO of Autonomy, Michael Lynch has repeatedly put down the allegations of Hewlett-Packard Company (NYSE:HPQ) by taking a dig and saying that HP was blaming him because of its own failures of managing Autonomy after its acquisition. The spokesperson of Michael Lynch said that they continued to reject the allegations and hope that it would move beyond just a smear campaign.
HP, in the meanwhile, remains adamant and says that the company has evidences to prove that Autonomy created an illusion and mislead the company and its investors.
