Hewlett-Packard will pay $100 million to a settlement fund to settle class-action litigation stemming from the impairment charge taken by HP following its acquisition of Autonomy.
“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,” said Hewlett-Packard Company.
HP acquired software maker Autonomy for $10 billion in 2011. Autonomy’s annual revenue was $870 million. Since Autonomy could not generate enough revenues, HP was forced to write off its investments. HP fired CEO Leo Apotheker, one of the deal’s biggest backers, as Autonomy struggled to justify disappointing sales and a series of missteps, AP reported.
Hewlett-Packard said the $100 million ultimately will go to people who bought HP shares between August 19, 2011 and November 20, 2012.
HP insists that the litigation has no merit, but that it chose to avoid a protracted legal battle. The company and its current and former executives and directors will be released from any Autonomy-related securities claims as part of the deal.
In March, HP announced its decision to purchase wireless networking company Aruba Networks for about $2.7 billion.