The maker of expensive printer ink paid off PGGM Vermogensbeheer B.V to make it stop suing it over its Autonomy buy out.
HP bought the British software maker in 2011 for $11.7 billion. The following year, HP announced the $8.8 million impairment charge as a result of what it called “accounting improprieties, misrepresentations and disclosure failures” in Autonomy’s financial statements. HP shareholders filed suit that same year.
However an investigation by the UK’s Serious Fraud Office was dropped earlier this year, but HP went on nevertheless to sue Mike Lynch and Sushovan Hussain, Autonomy’s former CEO and CFO, for $5 billion.
We should point out that Lynch and everyone to do with Autonomy deny wrong doing and claim that the mess was caused by HP mis-management.
Officially HP thinks that PGGM Vermogensbeheer B.V’s case had no merit but it was a good idea for HP and its shareholders to resolve settle the case as further litigation would be burdensome and protracted.”
Under the terms of the settlement, HP’s insurance will pay $100 million to a settlement fund that will be used to compensate shareholders who purchased HP shares between Aug. 19, 2011, and Nov. 20, 2012.
No individual is contributing to the settlement, which remains subject to court approval, HP said.