HP's Autonomy allegations trigger another investigation
Justin Sullivan/Getty Images
PALO ALTO, Calif. Hewlett-Packard (HPQ) says British authorities have opened an investigation into allegations that the company was duped when it bought business software maker Autonomy.
The inquiry disclosed in a Monday regulatory filing is the latest legal fallout from a deal that has saddled Hewlett-Packard with massive losses and depressed its stock price.
- HP profits top forecasts, but problems persist
- HP: Feds probing Autonomy over improper accounting
- Autonomy's former CEO defends his record in open letter to HP
HP alleges that Autonomy employees fabricated sales in a ruse that drove up the company's sale price. HP bought U.K.-based Autonomy for about $10 billion in 2011 and then last year wrote off $8.8 billion of that amount in a move that stunned Wall Street.
In its latest quarterly report, HP says that it was notified last month that the U.K. Serious Fraud Office opened an investigation into the Autonomy mess.
Autonomy founder Mike Lynch has denied HP's allegations.
Popular on MoneyWatch
- Reverse cell phone lookup service is free and simple
- Why geniuses don't have jobs
- Microsoft slashes Surface prices to lure buyers
- Look who doesn't deserve financial aid at NYU
- Chrysler expected to make Jeep recall refusal official
- Chrysler agrees to recall of Jeeps at risk of fire
- Top 10 professional life coaching myths
- NSA-style spying has been around for years