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HP to sue Deloitte UK in Autonomy case


Hewlett-Pachard (HP) is to sue Deloitte UK over its audit of software manufacturer Autonomy, as part of an ongoing legal case between the two companies.

March Wolinsky, a lawyer acting on behalf of HP, told the court the company intends to sue Deloitte UK over its role in auditing Autonomy's financial results prior to the botched acquisition.

According to Bloomberg, HP spokeswoman Sarah Pompei said: "We will continue to work to have the derivative actions settled or dismissed and to hold the former executives of Autonomy as well as Autonomy's auditor, Deloitte UK, responsible for the wrongdoing that occurred."

Deloitte spokesman James Igoe replied in an email that "any possible claim would be utterly without merit."

HP acquired Autonomy in late 2012 for $11.1bn, but was forced to write off $5bn from the acquisition after an internal investigation by HP allegedly found Autonomy had inflated its financial results before sale.

Autonomy was accused of mis-reporting and fraud, prompting investigations by the US Securities and Exchange Commission (SEC), as well as the UK's Serious Fraud Office.

A recent settlement between HP and the plaintiff shareholders was questioned on Monday in San Francisco's Federal Court by Judge Charles Breyer, as he rejected the agreement's proposal to pay up to $48m to lawyers helping shareholders sue former Autonomy executives.

 

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