Feds Investigating Autonomy Accounting Issues

HP revealed yesterday U.S. federal authorities are investigating alleged accounting irregularities at Autonomy that led to the $8.8 billion write-off.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Hewlett-Packard Co. acknowledged yesterday the U.S. Department of Justice is investigating fraud allegations related to the alleged accounting irregularities that led to the $8.8 billion write-off of the Autonomy acquisition.

HP referenced the investigation in its annual 10K filing yesterday, in which it stated the investigation began in late November, shortly after the company announced the massive write-off. At the time, HP said it would inform the U.S. and U.K. governments of the situation and invite the review.

Related articles

So far, three agencies appear to be investigating the potential fraud, including the U.S. Federal Bureau of Investigation (FBI) and Securities and Exchange Commission (SEC), as well as the U.K. Serious Fraud Office. Until the HP acquisition in August 2011, Autonomy was a British company with U.S. presence.

"As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the U.S. Department of Justice and the SEC related to the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy," HP wrote in a statement to the SEC.

The investigation acknowledgement did not go unnoticed by Mike Lynch, co-founder of Autonomy, who has denied any accounting malfeasance. Lynch is a public thorn in HP’s side, as he challenges every allegation lobbed by CEO Meg Whitman and her management team. Following yesterday’s disclosure, Lynch expressed disappointment HP did not provide more details on how it calculated the Autonomy write-down or provide specifics on the suspected accounting irregularities.

“We continue to reject these allegations in the strongest possible terms. Autonomy’s financial accounts were properly maintained in accordance with applicable regulations, fully audited by Deloitte, and available to HP during the due diligence process,” Lynch wrote on his rebuttal site, AutonomyAccounts.org. “We remain deeply concerned about how this process has been conducted, and believe it is in everyone’s interests for it to be resolved as soon as possible.”

Additionally, HP is facing several shareholder lawsuits related to the Autonomy deal. Investors accuse HP management of bungling the acquisition and misleading Wall Street, which led to a severe loss in the company’s equity value. In the past year, HP has written off more than $20 billion related to the Autonomy, EDS and 3Com acquisitions.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Want more articles like this?

 
More on Channel Business
newspapers

Today's channel rundown - 5 February 2016

Daily tech news and analysis to know now, including Acronis' new cloud partner program, HPE's Trilead acquisition, Samsung's Super Bowl seat and more

newspapers

Today's channel rundown - 4 February 2016

Daily tech news and analysis to know now, including Malwarebytes' bugs, Cisco's mobile data traffic forecast, Apple's patent loss and more

Obstacle and opportunity

Lenovo: Q3 earnings signal services opportunities for channel

Exec discusses what Lenovo's Q3 results mean for channel partners

business-team-drawing-plan-innovation

FireEye channel program upgrades keyed by expanded partner ecosystem

Technology partnerships significant for channel partners, exec says

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
erinmalonesophos

Vendor Q&A Series: Erin Malone, Sophos

The latest channel exec to sit in the new-look Channelnomics hotseat is Sophos' VP of North American channel sales

jessica-m-225x300

Editor's voice: The week's channel chatter - 5 February 2016

What's been happening this week on Channelnomics?

1-headlines-newspaper

Channelnomics story of the month - January 2016

Check out which piece the Channelnomics team liked best

partners-coinvest

How channel friendly is Cisco's $1.4 billion Jasper acquisition?

IoT acquisition may reap benefits later down the line