Feds Investigating Autonomy Accounting Issues

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

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

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  
More on Channel Business
contract-drafting

RackWare signs up to NetApp partner program

Firm integrating technology with NetApp and IBM

data-quality

Value over volume, RackWare says of expanded channel partner program

Aim is to have the right coverage with close relationships, VP says

divorce-pa

The velvet divorce? Options and disruptions to come from HP split

News that Hewlett-Packard is breaking into two companies continues to reverberate through the channel. While the ultimate impact on HP partners and customers remains unclear, the new entities will have plenty of options for plying their futures

treasure-chest-with-gold-coins

Channel strikes gold selling to non-techies

Tech sales staff busy selling to business units as much as tech staff, according to Gartner

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
steps55

Time to step up: vendors missing the mark on IoT

A new study by AVG Technologies finds that SMBs and MSPs see tremendous potential in the Internet of Things as a driver of business growth – provided IT vendors and solution providers step up their game

wael-aggan-cloudmask

Vendor Q&A Series: Wael Aggan, CloudMask

The latest vendor executive to sit in the Channelnomics hotseat is Wael Aggan, CEO of CloudMask

healthy-heart

Microsoft getting healthy, thanks to consumers

Is it time to take the software giant off the watch list of tech companies in distress, at least on the consumer side, asks Larry Walsh

John Murdock - Kaspersky Lab

Vendor Q&A Series: John Murdock, Kaspersky Lab

The latest executive to sit in the channelnomics hotseat is John Murdock, Vice President, Channel Sales, Kaspersky Lab North America