Hewlett Case Against HP-Compaq Deal OK'd For Trial

Walter Hewlett claims HP strong-armed one of its investors, Deutsche Bank, to vote in favor of the deal. A Delaware Chancery Court judge threw out HP's motion to dismiss the case, saying there are enough facts to let Hewlett's allegations go to trial.

The bar is high to have a case dismissed before both sides have a chance to probe the facts, and so the judge's ruling was widely expected by both sides.

The trial is slated to begin April 23.

"We respect the Chancellor's decision to hear the evidence on the issues that have been raised," an HP spokeswoman says."We remain confident, particularly based on the arguments presented, that once the facts are heard we will prevail."

Hewlett and the companies are awaiting the final tally of HP shareholder votes on the largest technology deal ever, but HP said it won by a narrow margin based on early figures.

Hewlett's lawsuit alleges that HP effectively bribed Deutsche Bank by offering business in exchange for its votes. He also claims HP misled shareholders on the progress of the merger planning.

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