HP reports $8.8 billion ‘impairment charge’ due to allegedly fraudulent Autonomy accounting

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HP has alleged that the owners of Autonomy heavily misrepresented their company’s financial state prior to HP’s takeover. The PC giant is taking an “impairment charge” of $ 8.8 billion thanks to what it calls “serious accounting improprieties.” HP bought Autonomy last year for around $ 10 billion.

In a call with investors and analysts today, HP CEO Meg Whitman said that the impairment charge is the result of a lengthy internal investigation. The investigation began when a senior member of the Autonomy team came forward after Autonomy founder Mike Lynch left HP. The SEC and UK criminal fraud department has been contacted in relation to the allegations, and is seeking compensation.

“HP is extremely disappointed to find that some former…

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