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HP Coughs Up $100 Million To Settle Lawsuit
Dutch pensions company scoops HUGE payoff over multi-billion writedownHewlett-Packard Co. said Tuesday that it would pay $100 million to settle a securities lawsuit related to the company’s failed acquisition of British software maker Autonomy Corp.
H-P bought Autonomy for $11 billion in 2011 and then wrote down $8.8 billion related to the deal. The company has accused Autonomy of improperly reporting $709 million in revenue over 2 1/2 years before the purchase.
Dutch pension-fund manager PGGM Vermogensbeheer B.V., the plaintiff in the securities case, had led a lawsuit on behalf of investors hurt by the write-down. PGGM itself had lost millions.
Under the terms, H-P insurance will pay $100 million to a settlement fund to anyone who bought H-P shares from Aug. 19, 2011, to Nov. 20, 2012. There will be no individual contribution to the settlement. As a result, all H-P members will be released from any securities claims related to Autonomy.
H-P said in a news release that while it believes the suit has no merit, “it is desirable and beneficial to H-P and its shareholders to resolve settle the case as further litigation would be burdensome and protracted.”
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