DOJ Probing Autonomy Over Fraud Claims
As if HP hasn't struggled enough in recent years, add another dilemma to the mix as 2013 looms large.
According to published reports Friday, Hewlett-Packard is cooperating with the U.S. Department of Justice as the DOJ investigates potential fraud by Autonomy, the company that was acquired by HP for a staggering $10.3 billion.
Word of the investigation came straight from HP through the company's annual 10-K regulatory filing this week. Autonomy stands accused of misrepresenting its financial performance before the acquisition deal with HP was completed, exposing HP and its investors to substantial risk.
"The computer maker booked an $8.8 billion writedown related to Autonomy last month after finding that some revenue had been recorded prematurely or improperly," Bloomberg reports.
Former Autonomy CEO Mike Lynch, who left Hewlett-Packard last spring, denies the claims.
“It is extremely disappointing that HP has again failed to provide a detailed calculation of its $5 billion writedown of Autonomy, or publish any explanation of the serious allegations it has made against the former management team, in its annual report filing,” Lynch said Thursday.
“We will co-operate with any investigation and look forward to the opportunity to explain our position,” Lynch added. “We continue to reject these allegations in the strongest possible terms.”