New attempt by HP to settle Autonomy case

HP is trying for a second time to settle a legal case against it bought by shareholders, as the saga over the US computer giant’s botched takeover of Autonomy rumbles on.

HP acquired Cambridge-founded Autonomy for $11.7 billion in 2011, but was forced to take an $8.8 billion write-down on the deal less than a year later.

HP accused Autonomy’s former management team including founder Mike Lynch of “accounting misrepresentations”, allegations that the accused firmly deny.

HP’s shareholders bought a legal case against the company’s management over the failed deal but earlier this year HP announced it was settling this case, with lawyers representing the investors joining its case against the former management of Autonomy.

Autonomy’s former chief financial officer Sushovan Hussain moved to block the agreement, claiming it would “shield from adversarial examination the claims of wrongdoing by HP officials.”

San Francisco judge Charles Breyer has since rejected part of the deal that would see lawyers for the shareholders receive millions in fees.

Today HP appealed to Judge Breyer to accept the remainder of the settlement, claiming Hussain’s objections lack substance.

HP said: “The proposed settlement provides valuable benefits to HP shareholders and allows the company to move forward with its claims against the true perpetrators of the fraud against the company.”

Sushovan Hussain could not be reached for comment.

A spokeswoman for the former management team of Autonomy said: “Three years on, after accusations of multi-billion dollar fraud, is this it? HP produces some out of context information, twisted to support false assumptions which is easily explained. There is no fraud.“