Home ListingJune 9, 2015

PGGM Wins $100M in HP-Autonomy Settlement

The Dutch pension giant alleged that current and former staff gave “false and misleading statements” relating to the disastrous 2011 acquisition.

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One of Europe’s biggest pension managers has reached a $100 million settlement with technology company Hewlett Packard (HP) related to its 2011 purchase of Autonomy.

PGGM announced the settlement this morning. The Netherlands-based company, which runs €200 billion ($225 billion) for Dutch pension funds, was lead plaintiff in the class action suit launched in 2012.

“We have taken steps in the US in an effort to protect the investments of our clients and other aggrieved investors.” —Eloy Lindeijer, PGGM“PGGM has taken the responsibility of acting as lead plaintiff in this case because it is crucial that investors are timely and adequately informed by listed companies about material information that might impact shareholder’s investment decisions,” said Eloy Lindeijer, chief of investment management. “Therefore we have taken steps in the US in an effort to protect the investments of our clients and other aggrieved investors.”

HP completed the $11 billion purchase of software company Autonomy in October 2011. However, soon after completion HP wrote off $8.8 billion related to the transaction amid accusations of accounting irregularities.

PGGM’s class action complaint alleged that HP and “certain of its current and/or former officers and directors” violated federal securities laws in the US by “making a series of materially false statements and omissions in connection with and following the Autonomy acquisition regarding Autonomy’s accounting practices and valuation”.

The defendants were alleged to have given “false and misleading statements” relating to the acquisition and Autonomy’s subsequent performance. Following the announcement of the write-off HP’s stock price “plummeted”, PGGM said,

The technology giant said in a statement that the action “has no merit”, but “it is desirable and beneficial to HP and its shareholders to… settle the case as further litigation would be burdensome and protracted.” The settlement releases the defendants from any securities claims related to Autonomy.

Lindeijer added that PGGM would “remain vigilant” regarding corporate governance at HP.