Shareholder Rights Law Firm Johnson & Weaver, LLP Investigates Hewlett-Packard’s Board of Directors For Breach of Fiduciary Duty
Shareholder Rights Law Firm Johnson
& Weaver, LLP has commenced an investigation into whether
certain officers and directors of Hewlett-Packard Co. (NYSE: HPQ) (“HP”)
breached their fiduciary duties to the company and violated federal
securities laws in connection with the Company’s acquisition of Autonomy
Corp. PLC (“Autonomy”).
Johnson & Weaver’s investigation focuses on HP’s November 20, 2012
announcement that it needed to take an $8.8 billion write down on its
August 2011 acquisition of Autonomy, a British software firm. On this
news, HP’s stock price fell $1.59 per share (12%) to close at $11.71 —
it’s lowest price in over a decade.
HP’s CEO Meg Whitman explained that this write down was largely caused
by Autonomy’s intentional manipulation of its financial metrics before
the acquisition. Autonomy’s former founder and former CEO, Michael
Lynch, has rejected this accusation. Further, several prominent experts
and analysts have questioned whether HP’s Board of Directors is trying
to paint itself as a victim of fraud in order to deflect criticism of
its own failure to perform proper due diligence before agreeing to
purchase Autonomy. The Associated Press quoted Mark Williams, a Boston
University finance professor and former bank examiner for the Federal
Reserve, as calling HP’s accusations against Autonomy “due diligence
deflection.” According to Williams: “Just to say ‘we paid too much
because of fraud’ doesn’t negate the fact of inadequate due diligence.
Some responsibility needs to come back to HP.”
Johnson & Weaver invites HP shareholders who are concerned about their
legal rights and remedies to contact attorney Brett Weaver at (619)
230-0063 or firstname.lastname@example.org.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights
law firm. The firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits. For more
information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.