The size of the loss, and the speed with which it occurred, marks HP's Autonomy deal as one of the most disastrous done by a major company in recent years.
Under the terms of the settlement, involving three lawsuits, the attorneys for the shareholders have agreed to drop all claims against HP's current and former executives, including CEO
The exception to that will be former officials at Autonomy. As part of the agreement, the shareholders' attorneys will assist HP in pursuing claims against Autonomy's co-founder and former CEO
The settlement, which followed mediation, is expected to be announced as soon as today.
HP took an
The size of the loss, and the speed with which it occurred, marks the deal as one of the most disastrous done by a major company in recent years.
In particular, sources close to an HP investigation into the matter say the technology giant believes Autonomy's results and prospects were made to look much better than they were.
Lynch has consistently denied HP's allegations, saying HP is blaming him for its own failure to manage Autonomy after the acquisition.
A spokesman for Lynch said "we continue to reject HP's allegations". He said it appears Whitman will be using a large sum of HP's money to avoid explaining in court why she made the
HP responded by saying it has evidence showing how Autonomy "created the illusion" that it was a high-growth company. "This had the effect of misleading investors and HP," it said in a statement.
Hussain has not responded to calls and e-mails. His lawyer,
Shared results of probe
Shareholders had sued HP board members and executives, accusing them of breaching their fiduciary duties and wasting corporate assets. The lawsuits sought corporate governance changes at HP, attorneys' fees, and the ability to pursue damages claims against those responsible for the acquisition.
Former HP chief executive
HP has shared the results of its investigation into accounting questions at Autonomy with attorneys representing the shareholders, the source familiar with the negotiations said.
One of the law firms representing shareholders in the settlement, Robbins Geller Rudman & Dowd, declined to comment. The other firm, Cotchett Pitre & McCarthy, was not immediately available for comment.
The attorneys representing shareholders will receive fees for helping HP pursue any further claims, the source said. Additional terms of HP's settlement with shareholders are unclear.
HP's allegations of accounting improprieties, misrepresentation and disclosure failures at Autonomy have prompted an investigation by the
The US authorities have asked for more documents and interviewed several witnesses in recent weeks, sources familiar with the HP investigation said.
Representatives of the
It is unclear if the investigations by the authorities in the US and
At the end of March, HP also settled a lawsuit that accused the personal computer maker's former management of defrauding shareholders by abandoning a business model it had long touted. In that case, the company agreed to pay shareholders $57 million.
The lawsuit was filed after former CEO Apotheker shocked investors on
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