Law Offices of Jon C. Furgison Files Notice of Shareholder Class Action Against Hewlett-Packard Co., Alleging Securities Fraud Related to HP 2011 Acquisition of Autonomy And Public Statements Regarding Its Integrity Servers

Fri Jan 18, 2013 8:39pm EST

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HERMOSA BEACH, Calif.,  Jan. 18, 2013  /PRNewswire/ -- The Law Offices of  Jon
C. Furgison  today announced a shareholder class action filing against
Hewlett-Packard Company alleging securities fraud in connection with the
company's 2011 acquisition of Autonomy Corporation, plc.  

The lawsuit, filed in U.S. District Court for the Northern District of 
California, and entitled  Neumann v. Hewlett-Packard Company, et al.,  was
brought on behalf of purchasers of HP common stock (NYSE: HPQ) during the period
between  February 20, 2008  and  November 20, 2012. Motions for lead plaintiff
for this action are due in Court no later than  January 25, 2013.  

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. Should members of the putative class have questions
concerning their rights and interests, they may contact plaintiff's counsel at
(310) 356-6890.

On  August 18, 2011, HP announced that it had agreed to purchase Autonomy, a
British company that supplies software that analyzes unstructured data, such as
emails, online videos and web-surfing, for patterns. HP paid approximately 
$11.1 billion  to acquire Autonomy. At the time of the purchase, Hewlett-Packard
insiders touted the deal's potential for substantial synergistic effects that
would prove profitable for the company. According to the complaint, HP and its
insiders continued to make public statements about the benefits of the Autonomy
purchase throughout 2012.  

According to the complaint, HP knew at the time it made its statements that it
had vastly overpaid for Autonomy and that the purported synergistic benefits
would never materialize. As widely reported, the company was forced to take an 
$8.8 billion  write down related to its acquisition of Autonomy, which it
announced on  November 20, 2012.  

The complaint also alleges a fraudulent scheme by Hewlett-Packard and certain
insiders from at least  February 20, 2008  until the present, concerning one of
its most profitable products, its proprietary Integrity servers. These servers
are sold primarily to HP's largest corporate customers and typically carry high
profit margin service contracts - in some years the Integrity servers have
accounted for as much as 15% of profits.  

According to the complaint, beginning in early 2008, HP learned that the
Integrity servers were facing obsolescence. The servers run on the Itanium chip,
manufactured by Intel Corporation. The complaint notes that without the Itanium
chip, HP could not sell the Integrity servers, and its high-profit service
agreements would be wiped out. At some point prior to  February 2008, Intel told
HP that it wished to stop making the Itanium chips, because they were no longer
profitable for Intel. According to the complaint, HP, facing massive losses in
profits, secretly agreed to pay Intel millions of dollars - just so that it
would agree to continue to make the Itanium chips. These payments served no
purpose other than to convince Intel to continue to make the chips and the
agreement was a closely-guarded secret of the Company, the complaint alleges. At
the same time it knew its Integrity servers were facing obsolescence, HP
continued making statements, which the Complaint alleges to be false, regarding
the long-term viability of those servers.

Shareholders allege that the frauds associated with the Autonomy acquisition and
the Integrity servers have had a severe effect on HP's stock. From  February 20,
2008  until  November 20, 2012, when the public finally knew the truth about the
two events, HP's market capitalization declined from  $117 billion to $23
billion, a loss of  $94 billion. It had traded as high as  $54.52  at one point
during the class period, and it closed at  $11.71  on  November 20, 2012.  

Plaintiff  Paul Neumann  seeks to recover damages on behalf of all purchasers of
HP common stock during the Class Period.  

Contact:  Jon C. Furgison
Law offices of  Jon C. Furgison

SOURCE  Law Office of  Jon  C. Furgison

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