Countering Hewlett-Packard Co.’s claim that it wrote off $8.8 billion of its purchase of Autonomy after discovering it had been misled about the British firm’s finances, a shareholder lawsuit claims the real reason was that HP failed to develop a product it had promised from the deal.
Accusing HP’s leadership of corporate waste and breaching their fiduciary duty to investors, the suit filed late Wednesday in U.S. District Court in San Jose, Calif., seeks unspecified damages and the removal of the Palo Alto, Calif., company’s board.
“HP continues to misrepresent the truth about what is really happening at HP and what the real issues with the Autonomy acquisition are,” according to the suit by Stanley Morrical, who owns 1,200 HP shares. “In an effort to conceal their own gross mismanagement, fraudulent conduct and potential exposure to securities claims, HP’s officers and directors have blamed the entirety of the $8.8 billion write-down on accounting issues.”
Asked about the allegations, HP spokesman Michael Thacker said, “We are reviewing the complaint and have no further comment at this time.”