October 15, 2007
H-P Settles BackDating Class Action at Mercury
Hewlett-Packard agreed to a $117.5 million settlement of a class action involving alleged stock option backdating at Mercury Corp., which it acquired in 2006. H-P previously paid a $25 million penalty to the SEC over the same charges. The allegations stem from conduct prior to H-P's acquisition of the company. Part of the controversey over the stock option backdating has been whether the shareholders can show injury from the practice; here, the parties agreed there was substantial injury. WSJ, H-P to Pay $117.5 Million to Settle Mercury Interactive Options Case.
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