Hewlett-Packard Co. (NYSE: HPQ), the No. 1 computer maker, was sued in U.S. District Court in San Francisco six days after it announced its 2011 acquisition of Autonomy Plc of the UK was based on fraud.
Robbins Geller Rudman & Dowd, a well-known class-action law firm in San Diego, filed the suit alleging HP, of Palo Alto, Calif., misled investors by not disclosing the fraud. It's also seeking an HP shareholder to be lead plaintiff in the lawsuit.
HP also concealed its 2006 acquisition of EDS was also based on “false and misleading statements” that caused the company's share price to trade at artificially high levels, the complaint said.
HP has now written off virtually the entire value of the $10.2 billion Autonomy purchase as well as the $13 billion EDS purchase. Last week, the company reported a record annual loss of $12.7 billion, or $6.41 a share.
Shares of HP Monday rose 30 cents to $12.74.
David Zielenziger is a veteran editor and journalist who has written for newspapers including the Baltimore Sun, Asian Wall Street Journal and EETimes, as well as for...