HP Misled Investors About Palm, PC Unit: Suit

Law360, New York (September 15, 2011, 10:28 PM EDT) -- Hewlett-Packard Co. was hit with a putative class action Tuesday claiming the PC maker misrepresented its acquisition of Palm Inc. as integral to the company's future before abruptly abandoning its Palm devices in August, resulting in a historic 20 percent stock drop.

In a complaint filed in California federal court, shareholder Richard Gammel alleges that HP, CEO Leo Apotheker and Chief Financial Officer Catherine Lesjack misled investors in earnings calls since November 2010 by touting HP's PC division and Palm's webOS operating system, which it gained...
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