updated 09:39 am EDT, Tue April 1, 2014
Suit alleges shareholders were mislead about company future intentions
HP has agreed to dole out $57 million in response to a legal challenge, accusing the company's previous executives of defrauding shareholders. The claim arose when HP changed corporate direction towards services and away from hardware, and ditched the WebOS platform with abandonment of the TouchPad tablet after less than two months availability.
HP spokesperson Sarah Pompei said in a statement that "HP has reached a mutually acceptable resolution through a mediated settlement." Following validation of the agreement, HP will deposit the funds into an escrow account within 20 days.
Lead complainants include several US-based pension funds, the Arkansas Teacher Retirement System, and Union Asset Management Holding AG from Germany. The suit alleged that what HP was saying publicly was inconsistent with its plan, and that prospective shareholders were duped into holding or buying shares.