HP Changes Autonomy Lawyers Faster Than CEOs

When it comes to HP Autonomy-related shareholder lawsuits, it looks like Hewlett-Packard (HPQ) changes attorneys more frequently than the company changes CEOs. 

Indeed, HP is now on its third set of attorneys as the company attempts to defend itself against Autonomy-related shareholder lawsuits. The lawsuits surfaced after HP acquired Autonomy in 2011 and later claimed former Autonomy executives had made misleading financial statements. Seeking a CEO shift, HP’s board replaced Leo Apotheker with Meg Whitman amid the controversy. 

HP in November 2012 took an $8.8 billion write-down on the Autonomy acquisition, claiming that the business wasn’t nearly as strong as former Autonomy management had indicated. HP stock dove on the news, and some shareholders filed suit.

Fast forward to the present and CEO Whitman seems to have stabilized the business. HP shares are up about 88 percent this year. And there’s even talk about HP re-taking the PC market share lead from Lenovo. 

Still, HP’s decision to play musical chairs with its legal defense could be cause for concern, The VAR Guy believes.