Friday, September 16, 2011

HP execs cheated and lied: misled investors before August crash

According to Reuters, Hewlett-Packard Co and top executives misled investors for months before unveiling a series of major decisions, such as the demise of the TouchPad, that hammered its shares, a shareholder alleged in a proposed class-action lawsuit filed this week.

Shareholder Richard Gammel accuses the world's largest technology company of concealing the fact that its existing business model was not working and that webOS -- the operating software it inherited after buying Palm -- was no longer central to its business model.

On August 18, the U.S. tech giant stunned Wall Street by saying it was considering a spinoff of the world's largest PC business, killing off webOS devices such as the TouchPad, and buying British software company Autonomy Corp for $12 billion. Shares of the company plunged 20 percent the following day, marking their biggest single-day drop since the Black Monday stock market collapse of 1987.

Read more at http://uk.reuters.com/article/2011/09/15/us-hp-lawsuit-idUKTRE78E79F20110915?feedType=nl&feedName=uktechnology

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