HP Pays $57 Million to Move Past WebOS Once and For All

WebOS

Hewlett-Packard Co agreed to pay $57 million to settle a lawsuit that accused the personal computer maker’s former management of defrauding shareholders by abandoning a business model it had long touted. The lawsuit was filed after former Chief Executive Leo Apotheker shocked investors on August 18, 2011 by announcing plans to refocus the company on business services and products. He also revealed plans to scrap WebOS, whose rights HP had obtained when it bought Palm Inc in 2010; pay $11.1 billion for British software company Autonomy Plc; and possibly spin off HP’s personal computer business. The company also halted sales of the TouchPad, after just seven weeks on the market. “HP has reached a mutually acceptable resolution through a mediated settlement,” said Sarah Pompei, an HP spokeswoman. According to the proposed settlement, HP will deposit $57 million into an interest-bearing escrow account within 20 days of getting an approval by U.S. District Judge Andrew Guilford in Santa Ana, California.

Read the full story at Reuters.

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