HP: We're out $8.8B because company we bought is a big fat liar

Shareholders of Hewlett-Packard Co. might be choking on their turkey this Thanksgiving with news that the IT giant is taking an $8.8 billion hit to its finances. This follows the revelation that, according to HP, a company it purchased last year, Autonomy Corporation PLC, had major “accounting improprieties, misrepresentations and disclosure failures” in its financial statements. HP CEO Meg Whitman says the information about the true state of Autonomy’s finances came to light when a senior executive blew the whistle after Autonomy’s founder and CEO, Mike Lynch left in May. The case has now been referred to the U.S. Securities and Exchange Commission. We suspect this year’s HP Christmas party will be scaled down. [Source]

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