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Hewlett-Packard Company Message Board

  • unclefulbert unclefulbert Nov 29, 2012 10:28 AM Flag

    Auditors sued by shareholder

    It is about time ... remember Arthur Andersen on Enron:

    29 November 2012 Last updated at 07:35 ET

    Hewlett Packard accountants sued over Autonomy purchase
    HP sign Some of HP's own executives are included in the lawsuit
    Continue reading the main story
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    Deloitte and KPMG are being sued over their alleged role in Hewlett Packard's controversial purchase of Autonomy.

    An HP shareholder says the US PC-maker paid too much for the UK software firm.

    The lawsuit, filed in California on Monday, accuses the two auditors and other named defendants of failing in their duty to spot that Autonomy was not worth as much as it claimed, and then misrepresenting the deal's value.

    Both firms have denied responsibility for valuing Autonomy at the time.

    "Simply put, HP grossly overpaid for Autonomy," claims the legal action, which was brought by Philip Ricciardi, an HP shareholder since 2007.

    Last week, HP announced that it was writing off $8.8bn of the $11.1bn it paid for Autonomy, of which $5bn was "linked to serious accounting improprieties, misrepresentation and disclosure failures".

    HP's boss, Ms Whitman, said that her firm had relied on the work of the UK unit of Deloitte Touche Tohmatsu, which had acted as Autonomy's auditor prior to the acquisition.

    She also said HP had relied on KPMG's audits of Deloitte's work.

    The computer maker said it would be taking civil action itself to try and recover money for shareholders.

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    • Its just the start of a line of forthcoming civil and criminal complaints that are on the way. Even though its only $ 5.5 billion (hahaha!) of the $ 10 billion when it gets this big its like the line in the movie with Cage and Keitel and Harvey tells Mr. Gates, man someone has got to go to jail! I think this is going to be a long drawn out process and hope that us poor suffering long term small shareholders will have the chance to get some more of our money back. Now that there are almost no more soap operas on TV I expect HP and this MB will be a cheap or is it an expensive replacement for some.

 
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