PracticeAccounting FirmsDeloitte dismisses HP claim plans as ‘utterly without merit’

Deloitte dismisses HP claim plans as 'utterly without merit'

HP plans to sue Deloitte over its auditing of Autonomy's accounts, lawyer tells court

Deloitte dismisses HP claim plans as ‘utterly without merit’

HEWLETT PACKARD plans to sue Deloitte over its auditing of Autonomy’s accounts in the two years leading up to its botched acquisition on the UK software company, a lawyer for the computer giant said in a US court on Monday.

HP is locked in a long-running and increasingly bitter dispute with the former management of Autonomy, the company it bought for $11.1bn (£6.7bn) in 2011 and subsequently accused of inflating its profits.

A year after the deal was signed, HP wrote down the value of its purchase by $8.8bn, of which $5bn was attributed to accounting misstatements. In restated accounts published on Companies House earlier this year, HP drastically revised Autonomy’s 2010 performance and claimed to have uncovered “extensive errors (including misstatements)” in the accounts, which were audited by Deloitte.

Deloitte has said that any HP claim “would be utterly without merit” and that it would defend itself strongly against it. “Deloitte was not engaged by HP, or by Autonomy, to provide any due diligence in relation to the acquisition of Autonomy. Deloitte UK was auditor to Autonomy at the time of its acquisition by HP. Deloitte UK conducted its audit work in full compliance with regulation and professional standards,” it said in a statement.

At the same hearing yesterday, US district judge Charles Breyer said he was unable to agree HP’s proposed settlement with investors who launched a lawsuit against HP for destroying shareholder value through the acquisition.

Mike Lynch, Autonomy’s founder and former CEO who denies any wrongdoing, has argued that the difference between Autonomy’s and HP’s valuation of the company stem from different accounting policies applied under US GAAP and IFRS, a claim HP has rubbished as “patently ridiculous’.

Related Articles

Top 50+50: Firms fall short on diversity

Accounting Firms Top 50+50: Firms fall short on diversity

3w Alia Shoaib, Reporter
Deloitte global revenues hit record $38.8bn

Accounting Firms Deloitte global revenues hit record $38.8bn

1m Emma Smith, Managing Editor
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

2m Alia Shoaib, Reporter
Deloitte reports gender pay gap of 18.2%

Accounting Firms Deloitte reports gender pay gap of 18.2%

3m Alia Shoaib, Reporter
Deloitte appoints new head of private client services

Accounting Firms Deloitte appoints new head of private client services

3m Emma Smith, Managing Editor
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

2m Alia Shoaib, Reporter
Deloitte reports revenue growth of 11%

Accounting Firms Deloitte reports revenue growth of 11%

2m Alia Shoaib, Reporter
Deloitte acquires Swedish digital agency Acne

Accounting Firms Deloitte acquires Swedish digital agency Acne

2m Alia Shoaib, Reporter