By Angela Chen
Hewlett-Packard Co. said Tuesday that it would pay $100 million
to settle a securities lawsuit related to the company's failed
acquisition of British software maker Autonomy Corp.
H-P bought Autonomy for $11 billion in 2011 and then wrote down
$8.8 billion related to the deal. The company has accused Autonomy
of improperly reporting $709 million in revenue over 2 1/2 years
before the purchase.
Dutch pension-fund manager PGGM Vermogensbeheer B.V., the
plaintiff in the securities case, had led a lawsuit on behalf of
investors hurt by the write-down. PGGM itself had lost
millions.
Under the terms, H-P insurance will pay $100 million to a
settlement fund to anyone who bought H-P shares from Aug. 19, 2011,
to Nov. 20, 2012. There will be no individual contribution to the
settlement. As a result, all H-P members will be released from any
securities claims related to Autonomy.
H-P said in a news release that while it believes the suit has
no merit, "it is desirable and beneficial to H-P and its
shareholders to resolve settle the case as further litigation would
be burdensome and protracted."
The settlement comes as H-P prepares to split into two companies
on Nov. 1. HP Enterprise will sell products and services targeted
to corporate-technology departments, while HP Inc. will push PCs
and printers.
H-P sued Autonomy's former Chief Executive Michael Lynch and
former Chief Financial Officer Sushovan Hussain on March 30,
seeking approximately $5.1 billion in damages.
Shares of H-P, inactive premarket, are down about 19% this year
through Monday's close.
Write to Angela Chen at angela.chen@dowjones.com
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