HP confirms DOJ investigation into Autonomy acquisition

HP said in a regulatory filing with the SEC that it has provided information to U.S. and U.K. authorities

HP said in a legal filing Thursday that the U.S. Department of Justice is investigating its $10.3 billion acquisition of enterprise search company Autonomy, which HP alleges inflated its value through accounting tricks.

HP also said it has provided information to the U.K.'s Serious Fraud Office and the SEC related "to the accounting improprieties, disclosure failures and misrepresentations at Autonomy" prior to the acquisition, according to HP's 10-K filing with the U.S. Securities and Exchange Commission (SEC).

The company said last month it had shared its allegations with those agencies, urging them to open civil and criminal investigations. The DOJ advised HP on Nov. 21 of its investigation, the filing said.

HP disclosed an $8.8 billion write-down in November, around $5 billion of which was attributed to accounting improprieties by Autonomy. The write-down was for impairment of goodwill, a term covering intangible assets such as the value of a brand and good customer relations.

Autonomy's founder, Mike Lynch, who left the HP in May, has fiercely contested HP's claims. He published a stern rebuke on Friday.

"We continue to reject these allegations in the strongest possible terms," Lynch wrote. "Autonomys financial accounts were properly maintained in accordance with applicable regulations, fully audited by Deloitte, and available to HP during the due diligence process."

Lynch wrote that he and his Autonomy colleagues have not yet been contacted by regulators. "We will cooperate with any investigation and look forward to the opportunity to explain our position," he wrote.

HP looked closer into the Autonomy acquisition, completed in October 2011, after a senior member of its former management team came forward following Lynch's departure.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags CriminalAutonomylegalHewlett-Packard

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?