The OEM has come to an agreement with shareholders in the long-running Autonomy case.
In a press release, the OEM reported that it has “entered into a settlement agreement” with the “lead plaintiff” in a securities class action against it “following its acquisition of Autonomy”. The lead plaintiff is 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.
HP added 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 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. 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 settlement is currently “pending” in the United States District Court for the Northern District of California, and HP added that it is also “subject to court approval”.