HP coughs up $100 MEEELLION to settle Autonomy lawsuit
Dutch pensions company scoops HUGE payoff over multi-billion writedown
HP has coughed up $100m (£65m) to settle its legal dispute with a Dutch pension fund over its massive $8.8bn (£5.6bn) Autonomy write-down.
HP confirmed today that it has entered into a settlement agreement with PGGM Vermogensbeheer, the lead plaintiff in the securities class action arising from the impairment charge taken by HP following its acquisition of Autonomy.
"While HP believes the action has no merit, it is desirable and beneficial to HP and its shareholders to resolve settle the case as further litigation would be burdensome and protracted," the company said in a statement.
Under the terms of the settlement, HP's insurance will pay $100m to a settlement fund that will be used to compensate persons who purchased HP shares during the period from August 19, 2011 through November 20, 2012.
"No individual is contributing to the settlement. HP and its current and former officers, directors, and advisors will be released from any Autonomy-related securities claims as part of the settlement," HP said.
The action was first brought to the North California District Court in November 2012. It followed allegations the same month by HP against Autonomy that the company has "outright misrepresented” its value prior to the $11bn acquisition.
Last month HP made public the details of the lawsuit it has filed against former Autonomy executives Mike Lynch and Sushovan Hussain in the UK.
It is seeking damages in excess of $5bn (£3.3bn) from Lynch and Hussain, on claims that these alleged accounting irregularities ultimately forced HP to write down approximately 80 per cent of the $11bn (£7.1bn) that it spent to acquire Autonomy.
Lynch has repeatedly denied any wrongdoing. He has previously said he plans to counter-sue HP with a claim that he says "is likely to be well in excess of £100m. ®