New York, NY, United States (4E) – The U.S. Department of Justice had started a probe amid allegations by Hewlett-Packard Co. which software business Autonomy Corp. misrepresented its financial performance before being purchased inside 2011.
Hewlett-Packard revealed which Justice Department representatives advised them about Nov. 21 it was starting an research relating to Autonomy following initially reports of accounting scam appeared, according to HP’s 10-K filing introduced about Thursday.
The Palo Alto, California-based organization is carefully using authorities because chief executive Meg Whitman seeks to reverse the fortunes of the firm, that for a long time bogged by administration chaos, failed deals plus strategic errors. HP also mentioned it is cooperating with all the U.S. Securities plus Exchange Commission as well as the UK’s Serious Fraud Office.
HP acquired the British software machine last year for over $ 10bn however, found itself inside an accounting scandal last month due to the deal, following composing down the buy value by $ 8.8bn.
Whitman’s predecessor, Leo Apotheker, inked a $ 10.3bn deal with past Autonomy CEO Mike Lynch to market the business the latter co-founded. Lynch eventually left Hewlett-Packard inside May following he was fired.
Whitman advertised a associate of Autonomy’s administration team offered the info which motivated an internal probe following Lynch’s departure.
In a statement, Lynch mentioned which he’ll cooperate with all the research plus looks forward to explain his side. He also firmly denied claims of wrong practice which led to the deal.