Nov. 20, 2012: HP's $8.8 Billion Autonomy Charge
HP stunned investors on Nov. 20 by revealing that it was taking an $8.8 billion charge against earnings after discovering what the company called "serious accounting improprieties" by Autonomy. HP claimed it was hoodwinked by Autonomy management, alleging a "willful effort to mislead investors and potential buyers" that "severely impacted HP management's ability to fairly value Autonomy" at the time of the HP acquisition.The announcement resulted in HP shares tumbling 12 percent, closing at $11.71, the lowest level in more than a decade. If that wasn't enough, HP posted a fiscal fourth-quarter loss of $6.9 billion on a 7 percent drop in sales to $30 billion.
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