HP/mercury SETTLES OVER OPTIONS SCANDAL

  • Print
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • 2toner1-2
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • ncc-banner-902-x-177-june-2017
  • banner-01-26-17b
  • ces_web_banner_toner_news_902x1776
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • 4toner4
Share

HP/mercury SETTLES OVER OPTIONS SCANDAL

 user 2007-10-16 at 10:59:00 am Views: 61
  • #19151

    HP’s Mercury settles over options scandal
    Hefty $117.5m to resolve case
    HP-owned
    software maker Mercury is to settle an options backdating class action
    lawsuit by coughing up a staggering $117.5m.The firm was previously
    known as Mercury Interactive before HP bought it for $4.5bn last
    year.According to the Financial Times, Mercury will pay the biggest
    settlement of its kind, dwarfing amounts paid in similar cases in the
    US.The firm, which had somewhat ironically provided regulatory
    compliance software to its users in the past, was accused by the
    Securities and Exchange Commission (SEC) of share options backdating
    between 1997 and 2002.As we reported in May this year, the SEC had
    accused Mercury’s former chief executive Amon Landen, former chief
    financial officers Sharlene Abrams and Douglas Smith, and former
    general counsel Susan Skaer of aiding and abetting violations of
    anti-fraud laws between 1997 and 2005.Landen quit the firm in 2005 when
    the share allocation scandal first broke. Mercury’s shares were later
    suspended from the Nasdaq stock market and HP swooped in to buy the
    harangued company in July 2006.

    Mercury had agreed in May to pay
    $25m to settle its case with the SEC.At the time of HP’s takeover of
    Mercury, the computer and printer giant’s chief executive Mark Hurd
    said: “We’ve been thinking about this for a while. It has to be a deal
    that makes sense. This transaction demonstrates HP is building a
    software business that is to be reckoned with.”The Mercury case was
    said to have been agreed in principle but is still awaiting approval
    from the courts, the outcome of which should see money put “back in the
    hands of shareholders”, reports the FT.Undoubtedly feeling the sting,
    HP said yesterday that it had agreed to a settlement, but stayed quiet
    on providing any further details.