HP to pay $57M to settle lawsuit after mobile, PC unit abandoned

The settlement comes after former chief executive Leo Apotheker ditched the company's mobile and PC unit, a decision that was later unraveled when Meg Whitman arrived.

Image: HP

HP will pay $57 million to settle a lawsuit brought on by shareholders after its former chief executive bailed on its mobile and PC ventures in 2011.

When Leo Apotheker announced in August 2011 that the company would shift its business model to focus on its business and enterprise efforts — in the process ditching Palm handset business and webOS mobile platform, which it bought in 2010, as well as its PC business — the decision was subsequently partly rolled back when he incumbent chief executive Meg Whitman arrived.

Palm and webOS were wound down, but the PC business remained. But shareholders were angry and brought the suit against the company in response to the move.

"HP has reached a mutually acceptable resolution through a mediated settlement," a HP spokeswoman told the Reuters news agency.

The $57 million sum will be deposited into an escrow account following the seal of approval from U.S. District Judge Andrew Guilford in Santa Ana, CA.

(via Reuters)