HP Continues to Pursue Ex-Autonomy Executives
The tech vendor, weeks after settling investor lawsuits around the troubled Autonomy deal, is now suing the ex-CEO and ex-CFO for $5.1 billion.Hewlett-Packard, just weeks after getting court approval on a deal to settle shareholder lawsuits around its controversial $11 billion acquisition of Autonomy Software almost four years ago, is now suiting Autonomy's former CEO and CFO for more than $5 billion. The move adds to the 2-year-old tangled legal history stemming from the Autonomy buy in 2011 that cost HP another $8.8 billion in charges a year later due in large part to questions around Autonomy's accounting practices before the deal and led to lawsuits between HP, Autonomy and HP investors. HP officials have said in a statement this week that the company "can confirm that, on March 30, a claim form was filed against [ex-Autonomy CEO] Michael Lynch and [ex-CFO] Sushovan Hussain alleging they engaged in fraudulent activities while executives at Autonomy." The lawsuit was filed in London. According to a Bloomberg report, Autonomy's former management team said in a statement it would respond by suing HP for $148 million "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."
HP began pursuing the Autonomy deal in 2010 under then-CEO Mark Hurd, and the deal was closed a year later by Hurd's successor, Leo Apotheker, whose 11-month tenure was marked by an effort to build up the company's enterprise software capabilities. Autonomy's software enables businesses to search and retrieve information in databases and other repositories across computer networks.