HP takes $8.8 billion hit, blames Autonomy

HP says misrepresentations by Autonomy in its purchase deal led to multibillion-dollar charge

It looks like a deal gone horribly wrong. Today, Hewlett-Packard Co. (HP) announced it will be taking an $8.8 billion charge as a result of fraudulent activity and misrepresentations made by Autonomy, a software company HP acquired last year for $11.1 billion.

“HP is extremely disappointed to find that some former members of Autonomy’s management team used accounting improprieties, misrepresentations and disclosure failures to inflate the underlying financial metrics of the company, prior to Autonomy’s acquisition by HP,” the company said in a statement today. “These efforts appear to have been a willful effort to mislead investors and potential buyers, and severely impacted HP management’s ability to fairly value Autonomy at the time of the deal.”


Cathleen Flahardy

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