HP has finally reached an agreement to settle shareholder litigation that arose after its takeover of Autonomy in 2011.
The vendor released a statement earlier this week confirming that it and lawyers representing the plaintiffs in three shareholder suits have now reached a deal which will put a stop to further legal action. But the agreement is still subject to court approval.
In an interesting development, if the settlement is given the green light, the plaintiffs will now help HP to bring claims against former Autonomy execs, including ex-CEO Mike Lynch and former CFO Shushovan Hussain.
"All claims against current and former directors, officers and advisers of HP (other than legacy Autonomy officials and Autonomy’s advisers) related to or arising out of the Autonomy acquisition will be dismissed," the statement said.
In well-documented events, Mike Lynch sold his UK-based firm to HP for $12bn (£7bn) in 2011, but later the IT giant had to write down $8.8bn due to "serious accounting irregularities", which HP claimed had exaggerated the price it paid for Autonomy.
As reported earlier this week, Lynch has strenuously denied HP's allegations throughout via his AutonomyAccounts.org website and took to the site again when rumours of the shareholder settlement with HP first surfaced.
He wrote on Monday: "It seems Meg Whitman will be using a large sum of HP's money to avoid explaining in court why she made false allegations regarding Autonomy in November 2012. We continue to reject HP's allegations, and note that over recent months a number of documents have emerged that prove Meg Whitman misled her shareholders."
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