Ex-Autonomy CFO opposes HP shareholder settlement

Reuters News
Posted: Jul 21, 2014 11:26 AM

(Reuters) - A former chief financial officer of Autonomy Corp is opposing a settlement between Hewlett-Packard Co executives and directors and the company's shareholders over HP's troubled $11.1 billion acquisition of the British software company.

In a Monday court filing, former CFO Sushovan Hussain called the settlement "collusive and unfair" because it would shield HP officials from scrutiny and any blame over the Autonomy purchase, which resulted in an $8.8 billion writedown.

The settlement, which requires court approval, calls for HP shareholders to drop their claims against current and former HP officials, and help HP pursue claims against former Autonomy officials like Hussain and former Chief Executive Officer Michael Lynch.

HP spokesman Howard Clabo in a statement called Hussain's opposition to the settlement "baseless."

Lynch has not filed court papers opposing the settlement, but a spokesman said Hussain's motion "reveals the depth of the corruption that permeates the settlement."

The case is In re: Hewlett-Packard Co Shareholder Derivative Litigation, U.S. District Court, Northern District of California, No. 12-06003.

(Reporting by Jonathan Stempel in New York; Additional reporting by Nadia Damouni; Editing by Lisa Von Ahn)