Wednesday, June 19, 2013 | 5:02 a.m.
Hi, (not you?) | Member Center | Sign Out
Posted: 8:53 a.m. Friday, Dec. 28, 2012
KTVU and AP Wires
NEW YORK —
Hewlett-Packard Co. says that the Department of Justice is investigating HP's business software unit Autonomy, which the computer maker has accused of fudging its accounting.
HP said in a filing with the Securities and Exchange Commission late Thursday that it was informed by representatives of the Justice Department on Nov. 21 that the department had opened an investigation into Autonomy. The technology company also said that it provided information to the U.K. Serious Fraud Office and the SEC related to what it said were accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred before and in connection with its acquisition of the company.
HP, which acquired Autonomy for $10 billion in 2011, took an $8.8 billion charge to reflect that the U.K. company isn't worth what it paid. About $5 billion of that charge stemmed from improper accounting, according to HP.
Autonomy founder and former CEO Mike Lynch quickly fired back. He responded in a statement Thursday that HP had not provided a detailed calculation of its $5 billion write-down of Autonomy, or published any explanation of the allegations made against former management. A copy of the statement was posted on Forbes magazine's website.
Lynch has said that the allegations made against Autonomy by HP are false.
The difficulties with Autonomy are not the Palo Alto, Calif., company's only problems. Other acquisitions have not worked out as hoped, and HP's core PC and printer business has faltered as consumers choose smartphones and tablet computers rather than notebooks and desktop PCs.
HP's stock fell 28 cents, or 2 percent, to $13.76 in morning trading Friday. The company has lost nearly half its market value this year.
© 2013 Cox Media Group. By using this website,
you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices
.
Already have an account? Sign In
{* #registrationForm *} {* traditionalRegistration_displayName *} {* traditionalRegistration_emailAddress *} {* traditionalRegistration_password *} {* traditionalRegistration_passwordConfirm *}Already have an account? Sign In
{* #registrationFormBlank *} {* registration_firstName *} {* registration_lastName *} {* traditionalRegistration_displayName *} {* traditionalRegistration_emailAddressBlank *} {* registration_birthday *} {* registration_gender *} {* registration_postalZip *} {* traditionalRegistration_passwordBlank *} {* traditionalRegistration_passwordConfirmBlank *} {* agreeToTerms *}We have sent you a confirmation email. Please check your email and click on the link to activate your account.
We look forward to seeing you frequently. Visit us and sign in to update your profile, receive the latest news and keep up to date with mobile alerts.
Don't worry, it happens. We'll send you a link to create a new password.
{* #forgotPasswordForm *} {* forgotPassword_emailAddress *}We have sent you an email with a link to change your password.
We've sent an email with instructions to create a new password. Your existing password has not been changed.
To sign in you must verify your email address. Fill out the form below and we'll send you an email to verify.
{* #resendVerificationForm *} {* resendVerification_emailAddress *}Check your email for a link to verify your email address.

You're Almost Done!
Select a display name and password
{* #socialRegistrationForm *} {* socialRegistration_displayName *} {* socialRegistration_emailAddress *} {* traditionalRegistration_password *} {* traditionalRegistration_passwordConfirm *}Tell us about yourself
{* registration_firstName *} {* registration_lastName *} {* registration_postalZip *} {* registration_birthday *} {* registration_gender *} {* agreeToTerms *}