The PC provider agrees to pay $57m to resolve claims.
HP has agreed to pay $57m to resolve a shareholder lawsuit against its former CEO. Leo Apotheker, of making misleading statements about operations before he was ousted.
The PC maker was slapped with the lawsuit after Apotheker announced a plan on 8 August 2011 to refocus the company’s services and products.
Apotheker also unveiled plan not to go ahead with the WebOS project, which the company had acquired from Palm in 2010. The lawsuit claims that the company had halted sales of the TouchPa.3.
HP spokeswoman Sarah Pompei told Reuters: "HP has reached a mutually acceptable resolution through a mediated settlement."
HP will deposit $57m into an interest-bearing escrow account upon receiving approval from the US District Judge Andrew Guilford in Santa Ana, California, according to the proposed settlement.
The lawsuit was filed primarily by pension funds and other institutional investors including, Arkansas Teacher Retirement System, the Labourers’ Pension Fund of Central and Eastern Canada in Oakville, the LIUNA National Pension Fund and LIUNA Staff & Affiliates Pension Fund and the Union Asset Management Holding.