Did HP knowingly make false statements in the time before its deal to purchase Autonomy for $10 billion? That’s the allegation from an investor suing the firm in San Francisco federal court.
According to a report on Reuters, the lawsuit claims that HP’s “statements about its Autonomy acquisition were [knowingly] misleading.” Those statements would later lead to a negative impact in HP’s stock, as the company was forced to write down a stunning $8.8 billion in goodwill following the purchase.
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HP has claimed that it was essentially duped into the purchase, and that potential fraud was at play. Autonomy has strongly rebutted those claims. While this scandal and massive financial charge have been at play, the market has punished HP with a drop in its stock price.
That decline, however, has now bounced back more than a little.
If the lawsuit has legs, it will potentially exonerate Autonomy from certain legal issues; if HP knew what it was buying, then it cannot fault Autonomy for lying to it. HP, in that case, could be in hot water for lying itself, of course.
As this unfolds, and guilt is properly apportioned, TNW will keep you informed. For now, reserve judgement, as we lack sufficient data to affix blame.
Top Image Credit: Ben Watts