In spite of how outraged Autonomy received at HP for the implied fraud accusations, there is now a genuine lawsuit about the matter, one particular that requires far more than these two companies.
Genuine, Autonomy doesn't specifically qualify as its very own organization anymore, considering that it became portion of HP late final 12 months (2012).
Not only was the acquisition costly, but the shareholder backlash was so negative that it cost the firm $ eight. eight billion / six.78 billion Euro.
HP is now convinced that Autonomy either handled its finances very poorly or committed outright accounting fraud.
Autonomy founder Mike Lynch was none too pleased by this, and however isn't, but at least now he isn't the only so- known as scapegoat.
HP has also sued auditing companies Deloitte and KPMG for not noticing or ignoring red flags obtaining to do with Autonomy's accounting practices.
The lawsuit was filed late Tuesday, November 27, in a federal court in San Jose, California, The United States of America.
There is a silver lining while, for the defendants: HP is also accusing its personal former board of directors, officers and executives of breach of duty and negligence.
KPMG is denying acquiring been hired to do any audit function or oversee Deloitte's work on the Autonomy deal, which is curious. It only admits to acquiring been enlisted to offer limited companies with no relation to that certain audit. Meanwhile, Deloitte maintains that it by no means discovered any improprieties and was not accountable for due diligence on HP's acquisition anyway.
Provided how significantly income HP lost more than this mess, the lawsuit isn't probable to be solved in any way promptly or on pleasant terms.
Via: HP Shareholder Lawsuit Involves Two More Companies
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