Tag - Autonomy
A US district judge in San Francisco has outright rejected HP's settlement offer to settle the Autonomy acquisition class action suit in the US. Saying that "the shareholders appear to be relinquishing a whole universe of potential claims regarding HP governance and practices," Judge Charles Breyer has kicked the settlement back to the plaintiffs without suggestions for recovery. The matter is now likely to head to trial sometime in the summer of 2015.
US District Judge Charles Breyer has rejected the proposed HP deal to end shareholder litigation against it, at least in part. In yesterday's hearing to move the settlement forward, the judge did concede that "something went terribly wrong" with the HP and Autonomy deal from 2011 and subsequent $8.8 billion write-down of the firm in 2012, but rejected millions of dollars in attorney fees to be paid by HP, by saying "that's out. I'm not going to approve the fee arrangement, period"
Hewlett Packard and shareholder's legal representation have agreed to a settlement over the company's acquisition of software developer Autonomy, which has been wracked with allegations, and counter-claims of fraud and misrepresentation. Under the terms of the agreement, all claims against HP have been dropped, but former executives of Autonomy are still under the microscope, with the HP shareholders' attorneys now assisting HP in pursuing claims against them.
Former chief of HP acquisition Autonomy, Mike Lynch, has fired off a missive accusing HP of misleading shareholders about his former company's accounting problems. In his letter, the executive claims that the company was smeared by HP in the days leading to HP's $8.8 billion write-down in 2012, and asked the shareholders to "help put things right."
A pair of contradictory reports have surfaced today, regarding the potential sale of HP's troubled acquisition Autonomy to German software powerhouse SAP. Initially, the Times of London reported that HP had tried to sell the company to SAP, but a follow-up report from HP refutes all reports, with backup by SAP saying that an executive had a quote given in an interview misinterpreted by the UK paper.
Hewlett Packard co-chairman Ray Lane has stepped down from his position at the company, and is taking two other board members with him. Lane is leaving following a narrow re-election -- and G. Kennedy Thompson and John Hammergren, also both elected by a close margin -- are departing as well. All three are leaving in part due to their roles in the Autonomy acquisition scandal that rocked the company in 2012.
Amidst a growing movement to force out up to five of Hewlett Packard's board due to mishandling of the company's Autonomy purchase, shareholders have narrowly re-elected the existing members. Targeted members included John Hammergren, G. Kennedy Thompson, Marc Adreessen, Rajiv Gupta, and executive chairman Raymond Lane.
According to regulatory documents filed Monday, UK law enforcement has opened up an investigation into HP's claims that it was badly misled when it acquired software developer Autonomy. The inquiry by the UK Serious Fraud Office mirrors that of the US Department of Justice investigation that started at the end of 2012, after HP accused Autonomy of deceitful accounting and forged sales records.
Just before Hewlett Packard's March 20 shareholder meeting, a pair of proxy advisers are pushing for an ouster of several members of the board of directors. Investment firm Glass Lewis has recommended shareholders vote to remove venture capitalist Marc Adreessen, Rajiv Gupta, John Hammergren, and G. Kennedy Thompson from the board, with another firm -- ISS -- suggesting the removal of Hammergren and Thompson also. Both firms blame the directors for inadequate "due diligence" related to the controversial acquisition of British software company Autonomy that has dragged the company's financials down.
The US Department of Justice has commenced an investigation into reports of accounting fraud at Hewlett-Packard's troubled acquisition, Autonomy. In November, HP had made its own discovery of potential fraud at the software developer, and submitted evidence to federal regulators following a write-down of $8 billion of the value of the company, for which it paid $11 billion a little over a year ago.