HP to sue Deloitte in latest round of Autonomy row

Auditor says HP's claim would be 'utterly without merit'

HP is planning to sue the UK arm of Deloitte over its role in the firm's fraught buyout of Autonomy.

At the time HP bought Autonomy, Deloitte was its auditor. It insisted today that its work with the British software maker was "in full compliance with regulation and professional standards" and vowed to "defend ourselves strongly".

In 2011, HP admitted it had to swallow an $8.8bn (£5.5bn) writedown related to its Autonomy buy, and ever since, the duo has been locked in a war of words. HP claimed Autonomy exaggerated its profit by more than five times, and the latter's founder Mike Lynch encouraged HP shareholders to kick up a fuss after saying they had been "misled" by the firm.

Deloitte insisted it was only responsible for auditing Autonomy's accounts at the time and branded HP's latest plans as "utterly without merit".

"HP has apparently indicated that it intends to pursue a claim against Deloitte UK," Deloitte said. "Any possible claim would be utterly without merit and we will defend ourselves strongly against it.

"Deloitte was not engaged by HP, or by Autonomy, to provide any due diligence in relation to the acquisition of Autonomy. Deloitte UK was auditor to Autonomy at the time of its acquisition by HP. Deloitte UK conducted its audit work in full compliance with regulation and professional standards."

HP said its quest to get to the bottom of the issue continues.

"We will continue to work to have the derivative actions settled or dismissed and to hold the former executives of Autonomy as well as Autonomy's auditor, Deloitte UK, responsible for the wrongdoing that occurred," it said.