Quantcast

HP says gov’t investigating troubled Autonomy unit

By |


NEW YORK— Autonomy, the British business software company now owned by Hewlett-Packard Co., is facing a Justice Department investigation over improper accounting under previous management, according to HP.

In a filing with the Securities and Exchange Commission late Thursday, HP said Justice officials had informed the company on Nov. 21 that they were opening an investigation into the allegations, which HP said in November that it had uncovered after a senior Autonomy executive came forward. HP also reiterated that it provided information to the SEC and the U.K. Serious Fraud Office related to “accounting improprieties, disclosure failures and misrepresentations at Autonomy.”

Justice officials had no comment.

HP, which acquired Autonomy for $10 billion in 2011, took an $8.8 billion charge to reflect that the U.K. company isn’t worth what it paid. HP says about $5 billion of that charge stemmed from improper accounting.

Autonomy founder and former CEO Mike Lynch has said the allegations are false. He responded in a statement Thursday that HP had yet to provide a detailed calculation of that $5 billion or provide any explanation of the allegations. The statement was posted online at Forbes magazine’s website.

The Autonomy mess has deepened a steep decline in HP’s stock price, which has cut the Palo Alto, California, company’s market value by nearly half this year. HP had already been struggling because its personal computer and printer businesses have been faltering as more people buy smartphones and tablet computers.

HP’s stock fell 28 cents, or 2 percent, to $13.76 in morning trading Friday.








Recent Stories:

Williams beats Wozniacki to reach champs final 2 mins elapsed Women on front lines in Syria, Iraq against IS 32 mins elapsed Major figures in Binay wrangle are NP members 38 mins elapsed Discovery Channel revisits Tacloban a year after ‘Yolanda’ 48 mins elapsed Iran hangs woman for killing alleged rapist 1 hour elapsed Constitutional convention bill filed in House 2 hours elapsed EcoWaste: Respect the dead, keep cemeteries clean 2 hours elapsed Tunisians skeptical on eve of historic election 2 hours elapsed
Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.






Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement
Marketplace