Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Hewlett-Packard Company
Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/hewlett/)
today announced that a class action has been commenced in the United
States District Court for the Northern District of California on behalf
of purchasers of Hewlett-Packard Company (“Hewlett-Packard” or the
“Company”) (NYSE:HPQ) common stock during the period between August 19,
2011 and November 20, 2012 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff’s counsel, Darren
Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at firstname.lastname@example.org. If you
are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/hewlett/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint charges Hewlett-Packard and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Hewlett-Packard provides products, technologies, software, solutions and
services to individual consumers and small- and medium-sized businesses,
as well as to the U.S. government, and health and education sectors
around the globe. Hewlett-Packard also provides software solutions
through its Software business segment. On August 18, 2011, the Company
expanded its software offering when it announced that it would acquire
control of Autonomy Corporation plc (“Autonomy”) for $10.2 billion.
The complaint alleges that during the Class Period, defendants concealed
that the 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. In addition, defendants
concealed known negative business trends concerning the profit margins
of the Company’s Enterprise Services business, formerly known as
Electronic Data Systems Corporation (“EDS”), which Hewlett-Packard had
acquired in August 2008 for $13.0 billion. As a result of defendants’
false and misleading statements, the Company’s stock traded at
artificially inflated prices during the Class Period, reaching a high of
$29.89 per share on February 16, 2012.
On August 22, 2012, Hewlett-Packard issued a press release announcing a
third quarter 2012 earnings per share loss of $4.49, largely as the
result of an $8.0 billion charge for impairment of goodwill associated
with the acquisition of EDS. On this news, the Company’s stock price
dropped $1.56 per share to close at $17.64 per share on August 23, 2012.
Then, on November 20, 2012, the Company disclosed it had taken an $8.8
billion charge related to its acquisition of Autonomy due to serious
accounting improprieties. On this news, the Company’s stock price
dropped $1.59 per share to close at $11.71 per share, a decline of 12%,
on volume of 155 million shares.
According to the complaint, the true facts, which were known by the
defendants but concealed from the investing public during the Class
Period, were as follows: (a) at the time Hewlett-Packard acquired
Autonomy, the business’s operating results and historic growth were the
product of accounting improprieties, including the mischaracterization
of sales of low-margin hardware as software and the improper recognition
of revenue on transactions with Autonomy business partners, even where
customers did not purchase the products; (b) at the time Hewlett-Packard
had agreed in principle to acquire Autonomy, defendants were looking to
unwind the deal in light of the accounting irregularities that plagued
Autonomy’s financial statements; and (c) Enterprise Services’ operating
margin had collapsed from 10% in 2010 to approximately 6% as of April
30, 2011, 4% as of October 31, 2011, and 3% as of April 30, 2012, due to
various reasons, including unfavorable revenue mix and underperforming
Plaintiff seeks to recover damages on behalf of all purchasers of
Hewlett-Packard common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in nine offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries in history and has been ranked number one in the number of
shareholder class action recoveries in MSCI’s Top SCAS 50 every
year since 2003. According to Cornerstone Research, the firm’s
recoveries have averaged 35% above the median for all firms over the
past seven years (2005-2011). Please visit http://www.rgrdlaw.com
for more information.
Robbins Geller Rudman & Dowd LLP Darren Robbins, 800/449-4900
or 619/231-1058 email@example.com