HP Reaches Deal on Autonomy Lawsuits

According to HP, plaintiffs in the three lawsuits have agreed to these terms:

• Plaintiffs and their counsel at Cotchett, Pitre & McCarthy LLP and Robbins Geller Rudman & Dowd LLP will assist HP in bringing claims against Lynch, Hussain and potentially others.
• All claims against current and former directors, officers and advisors of HP (other than legacy Autonomy officials and Autonomy’s advisors) related to or arising out of the Autonomy acquisition will be dismissed.
• HP is in the process of adopting enhancements to policies and procedures in evaluating potential mergers and acquisitions that were developed with the assistance of plaintiffs and their lawyers.

The company wrote off $8.8 billion in 2012 related to the Autonomy acquisition.

A shareholder who led one of the lawsuits will receive up to $25,000 as a “service award” from HP, according to a report at The Wall Street Journal. HP has also agreed to pay two law firms that worked on the case a total of $18 million in retainer fees and to share out any future potential awards to HP with the attorneys. The share that can go to the attorneys is capped at $30 million. The settlement still requires approval by the court.

HP shares were up 0.6% in premarket trading Tuesday, at $33.89 in a 52-week range of $20.25 to 35.20.

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