HP Sued After Charging Autonony Buy Was Based On Fraud

on November 26 2012 5:04 PM
A HP Invent logo is pictured in front of Hewlett-Packard international offices in Meyrin near Geneva August 4, 2009.
A HP Invent logo is pictured in front of Hewlett-Packard international offices in Meyrin near Geneva August 4, 2009. Reuters

 

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.

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