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UK: Former exec challenges HP’s failed merger settlement

By  |  July 21, 2014

A former executive at UK software firm Autonomy Corp is reportedly challenging Hewlett-Packard’s settlement of three lawsuits filed over HP’s failed takeover of Autonomy, reports say.

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    Sushovan Hussain filed a notice Monday slamming HP’s settlement as “collusive and unfair.” If approved, Hussain said, it would let the company “forever bury from disclosure the real reason for its 2012 writedown of Autonomy: HP’s own destruction of Autonomy’s success after the acquisition.”

    HP announced an $8.8 billion writedown in 2012, one year after acquiring Autonomy; more than $5 billion of that reduction was attributed to accounting fraud and other practices by Autonomy executives.

    HP offered a settlement last month that calls for HP shareholders to end efforts to forced current and former HP officials to pay damages regarding the failed acquisition, which was made for $11.1 billion. Instead, shareholders would help HP pursue a lawsuit against former Autonomy officials, including Hussain, for the alleged wrongdoing.

    According to reports, while shareholders would not receive money from the settlement, lawyers fees could hit $18 million.

    A spokesperson for Autonomy said that Hussain’s motion to have the settlement rejected “reveals the depth of the corruption that permeates this settlement.”

    Full content: Toronto Sun

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