Boston, MA, 04/02/2014 (usastockreports)- Hewlett-Packard Company (NYSE:HPQ) has settled a shareholder lawsuit by agreeing to pay USD 57 million to the plaintiff. The Company’s former Chief Executive Officer Leo Apotheker was accused of making misleading statements about operations before he was expelled from his position on September 22, 2011.
The agreement is expected to have substantial monetary benefits for the plaintiffs as per a filing lodged in a federal court in Santa Ana. The lawsuit was filed in September 13, 2011, after Mr. Apotheker made strategy shifts and cut sales forecasts thrice.
However the top management is still in some trouble over accounting irregularities in purchase of a British software company Autonomy. Thepresent CEO Meg Whitman, ex-CEO Mr. Apotheker and the company’s board face separate lawsuits in San Francisco alleging that the warnings about irregularities were not taken heed of while purchasing the British software company for USD 10.3 billion. The company took an USD 8.8 billion writedown in 2012 for the same. Hewlett Packard maintains thatit has been defrauded by the British company’s former management.
In February, a person familiar with the matter alludedthat lawyers for the company and shareholders were in settlement talks. All attorneys i.e. Hewlett-Packard Company (NYSE:HPQ), plaintiff’s as well as attorneys for the company’s advisers on the Autonomy deal, agreed to keep the lawsuit on hold until May 15, as per a court filing Monday.
Hewlett-Packard Company (NYSE:HPQ) faces a securities fraud lawsuit and a derivative suit, on account of the Autonomy debacle.
The Company is trying to move ahead from a tumultuous period which had declining performance and the departure of two CEOs i.e. Apotheker and Mark Hurd before him.
While denying admission to any wrongdoing in the settlement of the Santa Ana case, the Palo Alto based computer giant favored settlement over fighting the lawsuit as it found it to be a more financially expeditious approach.