Cases

Missed Earnings Projections: Hewlett Packard

Misinformation can be spread by product manufacturers or organizations attempting to make their companies’ outlook appear more positive than it actually is. When the reality of a company’s situation is revealed, however, it can result in a major decline in stock price.

In re Hewlett-Packard Co. Securities Litigation

On Sept. 15, 2014, the court granted final approval of a $57 million settlement made between Hewlett-Packard and its investors for HP allegedly misleading them about the company’s plans to expand on its webOS development projects.

Investors alleged that Hewlett-Packard misled them about its ability to expand its emerging webOS “mini-ecosystem” (consisting of the TouchPad and two smartphones) to a full-fledged ecosystem of hundreds of millions of “seamlessly” connected webOS-enabled PCs and printers, all within the short timeframe of less than two years. After Hewlett-Packard abandoned webOS development in August 2011, the company’s stock price declined significantly.

Motley Rice served as co-lead counsel in the case.

The case is In re Hewlett-Packard Co. Securities Litigation, No. SACV 11-1404 AG (RNBx) (C.D. Cal.). Lead Plaintiffs were Arkansas Teacher Retirement System, Union Asset Management Holding AG, Labourers' Pension Fund of Central and Eastern Canada, and the LIUNA National (Industrial) Pension Fund and LIUNA Staff & Affiliates Pension Fund. 

Settlement Documents:
In re Hewlett-Packard Co. Securities Litigation

The period for joining this class action has ended, but settlement documentation is available here for reference:

If you have questions regarding cases similar to the In re Hewlett-Packard Co Securities Litigation settlement or if you would like to discuss a potential case, contact securities attorney Gregg Levin by email or call 1.800.768.4026.

*Prior results do not guarantee a similar outcome.

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