HP pays $57 million to settle fraud

According to foreign media reports, Hewlett-Packard has agreed to pay 57 million U.S. dollars to settle the company’s complaint against fraudulent shareholders.

On August 18, 2011, HP’s former CEO Leo Apotheker announced a plan that shocked shareholders, claiming that the company will return its business focus to commercial services and products. He also announced a series of plans, including HP's plans to abandon WebOS, which it acquired when it acquired Palm in 2010, and acquired British software company Autonomy and spin-off company's personal computer business for $ 11.1 billion.

In addition, Hewlett-Packard also reduced the price of its TouchPad by half, which was only 7 weeks after the product was launched.

HP spokeswoman Sarah Pompei said: "Through mediation, HP has signed a mutually acceptable solution."

According to the settlement agreement, Hewlett-Packard will invest $57 million in an interest-bearing escrow account within 20 days of the approval of the settlement agreement by Andrew Guilford, US District Court Judge, Santa Ana, California.

The main plaintiffs in this case include the Arkansas Teacher Retirement System, the Mid-Labor Central and Eastern Canadian Pensions in Oakville, Ontario, the North American Labor International Labor Union National Pension in Washington, DC, and the Staff and Branch Pension Funds, and Frankfurt, Germany. City's asset management company Lianfeng Investment.

Jonathan Gardner, the assistant legal counsel appointed by the plaintiff in the class case, said: “We are very satisfied with the settlement and we are very happy to recover the losses for the affected HP shareholders.”

Hewlett-Packard has been in transition for several years and is currently in the midst of transition. It hopes to reduce its dependence on PC business and shift its focus to computing devices and networking equipment for enterprise users.