Hewlett-Packard Prepared to Sue Deloitte (UK)3 Sep, 2014
USA/UK - August 2014 - Hewlett-Packard has revealed it plans to sue the UK arm of Deloitte, auditor of the Cambridge software firm Autonomy that HP bought for $11bn before writing off nearly half the company’s value and accusing the former management of accounting improprieties.
According to The Guardian press, the latest threat came as a San Francisco judge shot down HP’s $48m settlement with two law firms which had been pursuing HP directors over the affair on behalf of disgruntled shareholders. HP instead had persuaded the firms to drop the class action and join it in pursuing Autonomy’s former management.
HP bought Autonomy in 2011 but the following year wrote down its value by $5bn, blaming “accounting improprieties, misrepresentation and disclosure failures” by its former management. The Californian laptops, printers, servers and software group’s shares crashed after the announcement.