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7 Major SEC Allegations In The HP Settlement Findings

The commission alleges that some of HP’s print supplies sales practices in 2015 and 2016 violated federal securities laws.

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SEC Settlement

Following an investigation, the U.S. Securities and Exchange Commission Wednesday alleged HP Inc. violated several provisions of federal securities laws—including anti-fraud, reporting and disclosure controls provisions. The allegations relate to efforts within HP to meet targets for printing supplies sales and earnings, and stem from a period starting in early 2015—the year that HP Inc. split off from Hewlett Packard Enterprise—and continuing into mid-2016, according to the SEC.

“As set forth in the order, HP changed its go-to-market model in part to address these undisclosed sales practices and undertook a channel inventory reduction that reduced its net revenue by approximately $450 million during the third and fourth quarters of 2016,” the SEC said in a news release Wednesday. HP’s stock price fell nearly 6 percent after the announcement of the $450 million revenue reduction in mid-2016, the SEC said in a filing.

On Wednesday, the SEC announced that HP has reached an agreement to make a $6 million payment as part of settling the charges—and specified that HP is doing so “without admitting or denying the SEC’s findings,” the commission said.

HP made a short statement responding to the SEC announcement, which was provided to media outlets including CRN. “We are pleased to have resolved this matter, which involves historical disclosures from nearly five years ago,” HP said in the statement.

What follows are seven of the SEC’s allegations against HP that are included in a filing from the commission.

 
 
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