HP 2014 Annual Report Download - page 171

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Litigation and Contingencies (Continued)
statements, the departure of Mr. Hurd as Chairman of HP’s Board of Directors and HP’s Chief
Executive Officer, alleged violations of the FCPA, and HP’s acquisition of 3PAR Inc. and
Autonomy Corporation plc (‘‘Autonomy’’). On February 25, 2014, the court issued an order
granting HP’s administrative motion to relate Copeland II to Copeland I. On April 8, 2014, the
court granted the parties’ stipulation to stay the action pending resolution of Copeland I by the
United States Court of Appeals for the Ninth Circuit.
•Richard Gammel v. Hewlett-Packard Company, et al. is a putative securities class action filed on
September 13, 2011 in the United States District Court for the Central District of California
alleging, among other things, that from November 22, 2010 to August 18, 2011, the defendants
violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and
making false statements about HP’s business model, the future of the webOS operating system,
and HP’s commitment to developing and integrating webOS products, including the TouchPad
tablet PC. On April 11, 2012, the defendants filed a motion to dismiss the lawsuit. On
September 4, 2012, the court granted the defendants’ motion to dismiss and gave the plaintiff
30 days to file an amended complaint. On October 19, 2012, the plaintiff filed an amended
complaint asserting the same causes of action but dropping one of the defendants and
shortening the period that the alleged violations of the Exchange Act occurred to February 9,
2011 to August 18, 2011. On December 3, 2012, the defendants moved to dismiss the amended
complaint. On May 8, 2013, the court granted the defendants’ motion to dismiss in part and
denied it in part. As a result of the court’s ruling, the alleged class period in the action runs
from June 1, 2011 to August 18, 2011. The parties commenced mediation before a private
mediator and on March 31, 2014, the parties executed a settlement stipulation. On
September 15, 2014, the court granted final approval of the settlement and HP and certain of its
insurers paid approximately $57 million pursuant to the terms of the settlement agreement. The
deadline to appeal the court’s grant of final approval has passed and the court’s judgment is now
final.
•Ernesto Espinoza v. L´ eo Apotheker, et al. and Larry Salat v. L´ eo Apotheker, et al. are consolidated
lawsuits filed on September 21, 2011 in the United States District Court for the Central District
of California alleging, among other things, that the defendants violated Section 10(b) and 20(a)
of the Exchange Act by concealing material information and making false statements about HP’s
business model and the future of webOS, the TouchPad and HP’s PC business. The lawsuits also
allege that the defendants breached their fiduciary duties, wasted corporate assets and were
unjustly enriched when they authorized HP’s repurchase of its own stock on August 29, 2010 and
July 21, 2011. These lawsuits were previously stayed pending developments in the Gammel
matter, but those stays have been lifted. The plaintiffs filed an amended consolidated complaint
on August 21, 2013, and, on October 28, 2013, the defendants filed a motion to stay these
matters. In an order dated February 13, 2014, the court granted the motion to stay. At the
August 11, 2014 status conference, the stay was lifted. The plaintiffs informed the court that they
will move forward with their complaint. HP filed a motion to dismiss on November 21, 2014.
•Luis Gonzalez v. L´ eo Apotheker, et al. and Richard Tyner v. L´ eo Apotheker, et al. are consolidated
lawsuits filed on September 29, 2011 and October 5, 2011, respectively, in California Superior
Court alleging, among other things, that the defendants breached their fiduciary duties, wasted
corporate assets and were unjustly enriched by concealing material information and making false
statements about HP’s business model and the future of webOS, the TouchPad and HP’s PC
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