Zamansky & Associates LLC announces that it is investigating the
Hewlett-Packard Company’s (NYSE: HPQ) (“Hewlett-Packard” or the
“Company”) 401(k) plan for potential violations of the Employee
Retirement Income Security Act (“ERISA”). ERISA imposes fiduciary duties
on how companies manage and administer their 401(k) and retirement plans
for employees. The investigation concerns whether the Company breached
fiduciary duties by failing to provide sufficient disclosure to
employees who were plan participants, imprudently managing the plan and
through other self-dealing.
On August 18, 2011, Hewlett-Packard announced its third quarter fiscal
2011 financial results and issued revised guidance. Hewlett-Packard also
announced several major shifts in its long-term business model,
including that it "will discontinue operations for webOS devices,
specifically the TouchPad and webOS phones." This sudden announcement
followed the President and CEO’s resignation earlier for violations of
Company policy, and HPQ’s stock price declined $1.88 per share, to close
at $29.51 per share. This news led to shareholder derivative and fraud
lawsuits filed against Hewlett-Packard.
The shareholder lawsuits allege that the Company made materially false
and misleading statements to investors regarding its business and
financial results from November 22, 2010 and August 18, 2011. During
this time, the Company reported growing revenues and income, and its
stock price rose from $27 per share in March 2009 to as high as almost
$54 per share in April 2010. The lawsuits accuse the Company of
artificially causing this price rise, through false disclosures and
other improper acts.
Since the beginning of 2011 Hewlett-Packard’s stock price fell from over
$48 per share to recently under $15 per share, well below its 2009 low
trading price. Hewlett-Packard employees who invested in Company stock
through the plan may have purchased at an artificially inflated price or
otherwise been damaged. Company employees have rights under ERISA that
have not been asserted in the existing shareholder lawsuits.
What You May Do
If you have information that would assist Zamansky in its investigation
or would like to discuss your legal rights, you may, without obligation
or cost to you, e-mail email@example.com
or call (212) 742-1414.
About Zamansky & Associates
Zamansky & Associates is one of the leading law firms specializing in
ERISA and financial services arbitration and litigation. Our practice is
nationally recognized for our ability to aggressively prosecute cases
and recover losses.