Feeds

HP and shareholders to gang up against 'Brit Bill Gates'

Mike Lynch target for joint Autonomy operations

Providing a secure and efficient Helpdesk

Hewlett-Packard and its disgruntled shareholders have settled three lawsuits related to the $10.7bn acquisition of British search specialist Autonomy.

But the Autonomy fight is not over – far from it.

Both sides have now agreed to co-operate in "potential litigation" against Autonomy’s former CEO Mike Lynch and members of his old management team.

HP said Monday that shareholders’ attorneys would assist in bringing claims against Lynch, former Autonomy chief financial officer Shushovan Hussain and potentially others.

Why?

According to HP, an independent committee appointed by its board to evaluate the shareholders’ claims had put HP and its management in the clear.

Based on the committee’s recommendations, however, the board concluded HP had claims against Lynch and Hussain among others.

It’s on this basis that the parties are moving forward.

Under the proposed settlement, all shareholders’ claims against current and former directors of HP relating to or arising from Autonomy will be dismissed.

The proposed settlement was hammered out through mediation between HP and attorneys for the shareholders, overseen by a retired US district judge.

The settlement is subject to approval by the court, in the Northern District of California.

Shareholders squared up to HP in November 2012 with three suits.

They came after HP wrote down $8bn from its financial results at the time, claiming Autonomy had mis-represented its value during the 2011 purchase.

They claimed the HP exec team had misled them by concealing data about the state of the Autonomy business.

Claims were brought against HP, former CEO Leo Apotheker (who brokered the deal), current boss Meg Whitman, chief financial Cathie Lesjak and treasurer James Murrin.

Autonomy was Apotheker’s flagship deal and was supposed to re-invent HP as a software company.

Lynch, once hailed as the "British Bill Gates", has yet to respond to the details of the proposed settlement. He has consistently denied any wrongdoing and has accused HP of making false allegations and attempting to smear him and his company based on selective disclosure of documents. He made the accusation in a statement that Whitman's proposed deal with shareholders would effectively use "a large sum of HP’s money" to make the problem go away. ®

Beginner's guide to SSL certificates

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.