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  
More on Channel Business
Rejected Link Request

Salesforce CEO: SAP rejected our partnership

Marc Benioff said he attempted to collaborate with competitor

hired-hire-join-appoint-appointed-rubber-stamp-rubberstamp

IBM appoints new Global Business Partners VP

Michele Stern tasked with bringing $5bn in revenue

communication1

Communication breakdown: Getting vendor marketing and partner sales on the same page

Channel players talk struggles, consequences and solutions to poor communication among vendor marketing teams and channel sales teams

wires

HP to focus on wired, wireless to take market share from Cisco

Meg Whitman says there is opportunity to capture Cisco-dominated market

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
newspapers-and-glasses

Channelnomics' top five stories of the week - 3 July 2015

Check out which articles grabbed the most attention this week

jessica-m-225x300

Editor's voice: The week's channel chatter - 3 July 2015

What's been happening this week on Channelnomics?

Microsoft Surface Hub

Microsoft going big with partners on Surface Hub launch

Partners report strong demand for the wall-mounted collaboration device, anticipate even more opportunities when application development program rolls out in September

communication1

Communication breakdown: Getting vendor marketing and partner sales on the same page

Channel players talk struggles, consequences and solutions to poor communication among vendor marketing teams and channel sales teams