Shareholders Foundation, Inc.

Hewlett-Packard Company (NYSE:HPQ) Former Employee Alert: Lawsuit Filed over Stock Drop

A lawsuit was filed on behalf of certain participants in the Hewlett-Packard Company’s 401(k) plan over alleged breaches of fiduciary duties and former and current employees of Hewlett-Packard Company should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 

San Diego, CA -- (ReleaseWire) -- 12/19/2012 -- A participant in the Hewlett-Packard Company’s 401(k) plan filed a lawsuit in response to substantial losses including the loss through Hewlett-Packard’s Autonomy Corp PLC purchase. The lawsuit was filed on behalf of participants in the Hewlett-Packard Company’s 401(k) plan whose individual accounts transacted in and/or held Hewlett-Packard Company (NYSE:HPQ) common stock at any time between February 12, 2011 and November 22, 2102.

Those who are or were participants in the Hewlett-Packard Company’s 401(k) plan whose individual accounts transacted in and/or held Hewlett-Packard Company (NYSE:HPQ) common stock at any time between February 12, 2011 and November 22, 2102, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1 (858) 779 - 1554.

The plaintiff alleges that the Hewlett-Packard Company’s 401(k) plan committee and investment review committee allegedly failed to look out for the plan participant’s best interests by continuing to offer shares in Hewlett-Packard Company on an unrestricted basis. The plaintiff alleges that beneficiaries of the company's retirement plan continued to invest in HP stock despite that Hewlett-Packard Company’s 401(k) plan’s fiduciaries were aware or should have been aware of internal and external warnings indicating that Hewlett-Packard had engaged in a series of strategic management blunders wasting nearly $20 billion which has destroyed Hewlett-Packard’s market position and credibility, and brought it to the verge of collapse causing its stock price to fall approximately 76 %.

Investors in HPQ shares filed recently a lawsuit against Hewlett-Packard Company over alleged securities law violations. The plaintiff alleges that Hewlett-Packard Company and certain of its officers and directors violated the Securities Exchange Act of 1934. More specifically, the plaintiff alleges that alleges that between August 19, 2011 and November 20, 2012, defendants allegedly concealed that Hewlett-Packard Company had gained control of Autonomy in 2011 based on financial statements that could not be relied upon because of serious accounting manipulation and improprieties.

On August 18, 2011, Hewlett-Packard Company announced the terms of a recommended transaction under which Hewlett-Packard Company (through an indirect wholly-owned subsidiary, HP SPV) will acquire all of the outstanding shares of Autonomy for £25.50 ($42.11) per share in cash. The transaction was unanimously approved by the boards of directors of both Hewlett-Packard Company and Autonomy.

Hewlett-Packard Company said in the announcement that over the last five years, Autonomy has grown its revenues at a compound annual growth rate of approximately 55 percent and adjusted operating profit at a rate of approximately 83 percent. Furthermore, Hewlett-Packard Company said that Autonomy has a consistent track record of double-digit revenue growth, with 87 percent gross margins and 43 percent operating margins in calendar year 2010.

On October 3, 2012, Hewlett-Packard Company announced that it has acquired control of Autonomy Corporation plc.

Then on November 20, 2012, before the market opened, Hewlett-Packard Company reported its fourth quarter and FY 2012 results. Among other things, Hewlett-Packard Company disclosed that the Fourth quarter and full year fiscal 2012 results include a non-cash goodwill and intangible asset impairment charge of $8.8 billion relating to the Autonomy business within the Software segment. Hewlett-Packard Company said that the majority of this impairment charge is linked to serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation plc that occurred prior to HP's acquisition of Autonomy and the associated impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long-term.

Shares of Hewlett-Packard Company (NYSE:HPQ) dropped from $13.39 per share on Nov. 19, 2012 to $11.36 on Nov. 20.2012.

Those who are or were participants in the Hewlett-Packard Company’s 401(k) plan whose individual accounts transacted in and/or held Hewlett-Packard Company (NYSE:HPQ) common stock at any time between February 12, 2011 and November 22, 2102, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1 (858) 779 - 1554.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com