Hewlett-Packard Company Sued Two Former Autonomy Execs

Hewlett-Packard Company Sued Two Former Autonomy Execs
1588877 / Pixabay

Hewlett-Packard filed a lawsuit against former Autonomy CEO Michael Lynch and former CFO Sushovan Hussain in London on Monday. Hewlett-Packard alleged that the executives engaged in fraudulent activities during their tenure at Autonomy.

Play Quizzes 4

Hewlett-Packard is seeking $5.1 billion in damages

A spokesperson for Hewlett-Packard confirmed that the company filed charges against Lynch and Hussain. She declined to provide further details regarding the company’s lawsuit against the former Autonomy executives “until the proceedings have been served on the defendants.” HP is seeking$5.1 billion in damages from Lynch and Hussain in the lawsuit.

Hewlett-Packard acquired Autonomy for more than $11 billion during the tenure of its former CEO Leo Apotheker in October 2011.  In November last year, HP wrote down 8.8 billion accounting charge related to the Autonomy acquisition. At the time, the PC maker explained that it “discovered serious accounting improprieties” and “outright misrepresentations” related to the transaction.  The company said it overpaid Autonomy by approximately $5 billion.

This Too Value Fund Explains Why Turkey Is Ripe For Investment Right Now

TurkeyThe Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More

Lynch repeatedly and strongly denied the allegations of Hewlett-Packard that they practiced accounting irregularities in the transaction. In March last year, Lynch emphasized that HP selectively leaked documents and information to the international media, and frequently used materials taken out of context to create false impressions and smear their reputations.

According to him, Hewlett-Packard was misleading shareholders, and evidence shows that Autonomy was open and transparent in the deal. Shareholders filed a lawsuit against in connection with the Autonomy fraud scandal, and eventually settled the case last year.

Regulators in the United Kingdom and United States investigated Hewlett-Packard ’s allegations against Autonomy. The U.S, Serious Fraud Office recently closed its investigation after two years citing the reason that it didn’t find enough evidence for a “realistic prospect of conviction.” The U.S. Department of Justice (DOJ) investigation on the issue is still ongoing.

Former Autonomy executives to file counter charges against Hewlett-Packard

Lynch and Hussain issued a statement indicating that they will file counter charges against Hewlett-Packard in UK. Lynch plans to seek more than £100 million or $148 million in damages.

“The former management of Autonomy announces today they will file claims against Hewlett-Packard for loss and damage caused by false and negligent statements made against them by HP on 20 November 2012 and in HP’s subsequent smear campaign,” according to their statement.

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article James Choa: Time Watch Investments Case Study
Next article S&P 500 Earnings vs U.S. Economy: Market’s March Madness

No posts to display