Results 1 to 18 of 18
Like Tree4Likes
  • 2 Post By jaltman
  • 1 Post By C-Note
  • 1 Post By SmartFah
  1. jaltman's Avatar
    Posts
    285 Posts
    Global Posts
    729 Global Posts
       #1  
    Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Hewlett-Packard Company


    SAN DIEGO, Sep 13, 2011 (BUSINESS WIRE) -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") ( Hewlett-Packard Company: Robbins Geller Rudman & Dowd LLP ) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Hewlett-Packard Company ("HP") HPQ +0.51% common stock during the period between November 22, 2010 and August 18, 2011 (the "Class Period").

    {stuff left out}

    The complaint charges HP and certain of its officers and directors with violations of the Securities Exchange Act of 1934. HP is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.

    The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of defendants' false statements, HP's stock traded at artificially inflated prices during the Class Period, reaching a high of $48.99 per share on February 16, 2011.

    In July 2010, HP completed its acquisition of Palm Inc., a provider of smartphones powered by the Palm webOS mobile operating system, for $1.2 billion. During the Class Period, defendants represented that webOS was going to play an integral role in the Company's strategy going forward, including running on HP's new TouchPad tablet PC as well as on all of the Company's PCs by 2012.

    Then, on August 18, 2011, HP announced disappointing third quarter fiscal 2011 financial results and issued revised guidance for fiscal year 2011. In addition, HP announced several major shifts in its long-term business model, including that it "will discontinue operations for webOS devices, specifically the TouchPad and webOS phones." As news began to leak into the market, on August 18, 2011, HP's stock declined $1.88 per share, to close at $29.51 per share. The next day, HP's stock price fell to its lowest level in 6 years, trading as low as $22.75 per share before closing at $23.60.

    According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) HP's business model was not working, as the Company was unable to leverage its extensive portfolio and scale of products and services in a strategically beneficial manner; (b) webOS, the TouchPad and the PC business were not central to HP's business model and webOS would not be integrated across the Company's entire product line; (c) the TouchPad hardware was inefficient, limiting the degree of effectiveness of the webOS operating system; and (d) based on the foregoing, defendants lacked a reasonable basis for their positive statements about HP's turnaround, revenue growth rates, market share, new product introductions, diluted EPS, and the Company's ability to deliver upon its long-term growth model.


    I couldn't pull the link to the story from the financial program I was using to read it, but I am sure google is your friend.
    Jim Altman
    Palm III ->Treos 600->650->750->Pro->Pre Plus->Pre 2->Pre3+TouchPad
    SmartFah and laoh like this.
  2. #2  
    Interesting that the lawsuit claims that HP knew the TouchPad hardware was inefficient and that webOS would not be integrated sometime before Aug 18th but did not disclose this in timely fashion.

    The high stock price was Feb 2011 but I don't know how much of that price was attributable to the supposed value of Palm and webOS and how much to other factors.

    Went looking for your story and found this story, excerpt below,which suggests the Autonomy shareholders are reluctant to sell to HP. This is very interesting, times are rough for HP in either direction, if so.

    What If HP Loses Autonomy? - Seeking Alpha
    It was something of a shock.

    Hewlett-Packard (HPQ) has been forced to extend its offer for Autonomy plc to October 3, after just 41.6% of shares were tendered.

    It can't be a question of price. The offer was a 79% premium over the company's value when the agreement was made. Autonomy CEO Mike Lynch has already started a victory lap, seemingly looking for the next move after his employment with HP ends.

    In fact, the delay looks like a giant vote of no confidence by Autonomy shareholders, most of them British, in Hewlett-Packard's management and its embattled CEO, Leo Apatheker. Autonomy stock is still trading at a slight discount to the offer price...
  3. #4  
    read about it here: Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Hewlett-Packard Company | EON: Enhanced Online News

    According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) HP’s business model was not working, as the Company was unable to leverage its extensive portfolio and scale of products and services in a strategically beneficial manner; (b) webOS, the TouchPad and the PC business were not central to HP’s business model and webOS would not be integrated across the Company’s entire product line;(c) the TouchPad hardware was inefficient, limiting the degree of effectiveness of the webOS operating system; and (d) based on the foregoing, defendants lacked a reasonable basis for their positive statements about HP’s turnaround, revenue growth rates, market share, new product introductions, diluted EPS, and the Company’s ability to deliver upon its long-term growth model.
  4. #5  
  5. #6  
    <threads merged>
  6. #7  
    It's funny how HP keeps talking about doing what's best for shareholders, and this whole fiasco has had the exact opposite effect, and has outraged shareholders. I hope the shareholders win this lawsuit, & Leo get's the boot.

    HP will never be the same after all this.
  7. #8  
    Quote Originally Posted by bluenote View Post

    Went looking for your story and found this story, excerpt below,which suggests the Autonomy shareholders are reluctant to sell to HP. This is very interesting, times are rough for HP in either direction, if so.

    What If HP Loses Autonomy? - Seeking Alpha
    It was something of a shock.

    Hewlett-Packard (HPQ) has been forced to extend its offer for Autonomy plc to October 3, after just 41.6% of shares were tendered.

    It can't be a question of price. The offer was a 79% premium over the company's value when the agreement was made. Autonomy CEO Mike Lynch has already started a victory lap, seemingly looking for the next move after his employment with HP ends.

    In fact, the delay looks like a giant vote of no confidence by Autonomy shareholders, most of them British, in Hewlett-Packard's management and its embattled CEO, Leo Apatheker. Autonomy stock is still trading at a slight discount to the offer price...
    This deserves it's own thread. How deliciously ironic Wonder what the Leo apologists, who claim that the August moves were brilliant, will say if this falls through.

    I'm still not convinced that HP has the stomach to play with the big boys in the cloud and services market anyway. There are big margins in tablets too... if you do it right. Wonder where they could be if they were willing to invest half of the money being used to purchase Autonomy in the now "in limbo" PSG?

    C
    "Sometimes I feel like an OS-less child..."
    (with apologies to Billie Holiday )
    sledge007 likes this.
  8. #9  
    I don't care. I just want my money back!
    I bought HP stocks in June right before the TP release. I genuinely believed HP was going to take webOS somewhere... besides the toilet.

    "This is a marathon, not a sprint"
    "webOS will be on every computer we ship in 2012"
    "We'll make things right"

    Yes, I'm bitter.
  9. #10  
    Quote Originally Posted by C-Note View Post
    ... I'm still not convinced that HP has the stomach to play with the big boys in the cloud and services market anyway. There are big margins in tablets too... if you do it right. Wonder where they could be if they were willing to invest half of the money being used to purchase Autonomy in the now "in limbo" PSG?

    C
    This is what I don't get either. They don't like the returns they're getting on their 1.2 Billion dollar investment, so they scrap it and go spend $10 Billion on Autonomy? If they spent a fraction of that amount, & invest it into webOS instead, they would see a great turn around with a 1-2 years from now. But oh well, Leo & his impulsive decision making. That's why they are getting sued now.



    Quote Originally Posted by laoh View Post
    I don't care. I just want my money back!
    I bought HP stocks in June right before the TP release. I genuinely believed HP was going to take webOS somewhere... besides the toilet.

    "This is a marathon, not a sprint"
    "webOS will be on every computer we ship in 2012"
    "We'll make things right"

    Yes, I'm bitter.
    I hope the shareholders do win this case, you guys were definitely mislead. Big time!
    C-Note likes this.
  10. jaltman's Avatar
    Posts
    285 Posts
    Global Posts
    729 Global Posts
       #11  
    Well, I am not exactly Warren Buffet, but I do like to invest a bit here and there. I try to invest where I think companies have good products and are headed in the direction of using hte products well to grow the company. One bet I made was based on how Windows 95 looked while I beta tested it in 1994. That one paid for a nice lil country house in the mountains.

    I have been a palm fan since the Palm Pilot, but never invested until HP bought the company and looked like they could leverage webos into a major player in what is, inevitably, going to be the future of computing, mobile devices and peripherals. Yes, I feel misled.
    Jim Altman
    Palm III ->Treos 600->650->750->Pro->Pre Plus->Pre 2->Pre3+TouchPad
  11. #12  
    This has turned out to be a total clusterf... well, you get my point.

    The class action lawsuit, it appears, has very significant meat to it.. it doesnt take much to see and validate everything that is alleged, and, that's the really REALY sad part of it.

    Had HP just stayed the course, and stuck with their stated game plan, and learned as they went along, they probably would have succeeded where many mobile competitors have and are failing.

    A year ago, HP was an institution.. an icon of american ingenuity and corporate endurance and reliability.. today, I would guess that most people identify it with confusion, bureacracy, and an isolated existence from the real world, all leading to one very sad final conclusion:

    The death of a long standing brand.

    The only way out is to fire everyone at the top and start anew. Im not sure that is even close to a reasonable reality, at this point.

    Very, very sad.
    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

  12. #13  
    Quote Originally Posted by jaltman View Post
    Well, I am not exactly Warren Buffet, but I do like to invest a bit here and there. I try to invest where I think companies have good products and are headed in the direction of using hte products well to grow the company. One bet I made was based on how Windows 95 looked while I beta tested it in 1994. That one paid for a nice lil country house in the mountains.

    I have been a palm fan since the Palm Pilot, but never invested until HP bought the company and looked like they could leverage webos into a major player in what is, inevitably, going to be the future of computing, mobile devices and peripherals. Yes, I feel misled.
    Well stated, and, that's probably the same statement most of the class action complaintants are making, as well.

    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

  13. #14  
    Quote Originally Posted by C-Note View Post
    This deserves it's own thread. How deliciously ironic Wonder what the Leo apologists, who claim that the August moves were brilliant, will say if this falls through.

    I'm still not convinced that HP has the stomach to play with the big boys in the cloud and services market anyway. There are big margins in tablets too... if you do it right. Wonder where they could be if they were willing to invest half of the money being used to purchase Autonomy in the now "in limbo" PSG?

    C
    This.
  14. #15  
    As a side note to all of this:

    HP was the top PC maker in the world. If they give up that market, and those supplies dry up with a new owner producing less, it would drive PC prices up, accordingly.

    Whatever the "press" tries to say, PC's and laptops are here to stay for a long time to come. Tablets are NO replacement for them, in the slighest, despite what is being portrayed in the press as notebooks/netbooks seeing a decline in sales - in a year or two, when people try to really get real work done on a tablet, the frustration and limitations will become very apparent and the notebook and PC sales will rise proportionately, I predict.

    HP has no long term vision any more.
    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

  15. #16  
    Quote Originally Posted by LCGuy View Post
    As a side note to all of this:

    HP was the top PC maker in the world. If they give up that market, and those supplies dry up with a new owner producing less, it would drive PC prices up, accordingly.

    Whatever the "press" tries to say, PC's and laptops are here to stay for a long time to come. Tablets are NO replacement for them, in the slighest, despite what is being portrayed in the press as notebooks/netbooks seeing a decline in sales - in a year or two, when people try to really get real work done on a tablet, the frustration and limitations will become very apparent and the notebook and PC sales will rise proportionately, I predict.

    HP has no long term vision any more.
    Good points... though I suspect eventually the tablets will improve to a tipping point where they become useful enough to make sense.

    Funny thing is I buy a good number of laptops for work and we spend a premium for Lenovo laptops because (for us) they have been reliable. Not the cheaper consumer brands, but the Thinkpad, their higher end line. Not even the bean-counters blink at the invoices when they arrive.

    Wonder why HP can't make a laptop good enough to command a premium price if they want to make premium profits?

    C
    "Sometimes I feel like an OS-less child..."
    (with apologies to Billie Holiday )
  16. #17  
    c note. Lenovo laptops are absolute machines. I've used many of them in my time. They've all been super fantastic, really good quality.

    at the end of the day, you get what you pay for
  17. #18  
    I love Lenovos after getting to play with one. My next laptop purchase will be one of them.
    -- Bring back DateBk!!

Posting Permissions