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HP accuses Autonomy of fiddling finances
Another mess for computer maker HP, which is struggling in the face of rival PC makers, such as Lenovo and Apple, as the firm had to swallow a $5 billion charge in its latest quarterly earnings. What happened? HP claims Autonomy "inflated" the value of the company before HP bought it out, a claim the Autonomy management team flat-out denied.
HP's Meg Whitman said during a conference call that Autonomy was "smaller and less profitable than we had thought," suggesting the U.K.-based firm had fiddled its numbers and misstated its revenues before HP bought the company for $1.1 billion.
U.K. and U.S. authorities are now investigating the claims, but this clunker isn't going to be resolved until next year at the very earliest.