Ho v. Whitman, et al.January 22, 2013
Newman Ferrara LLP Files Shareholder Derivative Action Against the Board of Directors of Hewlett-Packard Company.
NEW YORK, January 22, 2013 (BUSINESS WIRE) – Newman Ferrara LLP announced today that it filed a shareholder derivative action in the Superior Court for the State of California, County of San Mateo (Case No. 519336) against the board of directors of Hewlett-Packard Company ("HP") in connection with HP's acquisition of Autonomy Corporation ("Autonomy").
On August 18, 2011, HP acquired Autonomy for $10.2 billion. On November 20, 2012, HP announced that it had taken an $8.8 billion write-down from its acquisition of Autonomy due to accounting improprieties that existed at Autonomy. On this news, HP's stock plunged to its 52-week low of $11.35 per share.
Newman Ferrara's Complaint alleges that the defendants failed to conduct proper due diligence with regard to HP's acquisition of Autonomy, consciously disregarding numerous red flags alerting them to Autonomy's accounting improprieties. The Complaint alleges that the defendants have breached their fiduciary duties and have caused HP to waste corporate assets.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation with an emphasis on securities, ERISA, shareholder litigation, consumer fraud, and real estate.
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