The agreement concerning the Autonomy purchase has been approved by a US court.
The OEM reported that Judge Charles R. Breyer, Senior District Judge at the US District Court for the Northern District of California, has now approved the “final settlement” of the case between HP and its shareholders regarding the acquisition of Autonomy. The OEM acquired Autonomy in 2011, but wrote down its worth in November 2012, claiming that “accounting fraud and inflated financials” from Autonomy officials, including Lynch, were to blame, and HP’s shareholders sued HP for mismanagement, though a settlement was announced in June 2014 and secured in March this year.
The OEM also announced in June this year that the settlement agreement had been secured with “lead plaintiff” PGGM Vermogensbeheer B.V., and under the settlement’s terms, HP’s insurance will pay $100 million (€88.5 million) to a settlement fund “used to compensate persons who purchased HP shares” between 19 August 2011 and 20 November 2012.
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HP added at the time that while it “believes the action has no merit”, it is “desirable and beneficial to HP and its shareholders to resolve [and] settle the case as further litigation would be burdensome and protracted”. No one individual is contributing to the settlement, and HP added that both it and its “current and former officers, directors, and advisors will be released from any Autonomy-related securities claims as part of the settlement”.
The OEM commented on the final settlement of the case: “HP is pleased with the court’s decision today. This will be the best outcome for our shareholders and we will be happy to put this matter behind us.” The Recycler reported in April on HP’s naming of former Autonomy CEO Mike Lynch, alongside Finance Director Sushovan Hussain, in a claim filed for $5.1 billion (€4.7 billion) in damages at the UK High Court, with the legal issues surrounding the Autonomy acquisition continuing.