HP's Soaring Stock Could Deflate Suits Over $8.8B Writedown

Law360, New York (March 19, 2013, 5:16 PM EDT) -- It's a familiar tale: Company discloses massive writedown, stock plummets, shareholders sue to recover damages.

But Hewlett Packard Co.'s story is different. In the four months since the company disclosed an $8.8 billion impairment charge, which it mostly blamed on alleged accounting fraud at a British software company it bought in 2011, HP's stock has soared. It closed Tuesday near $23 per share, up 73 percent since Nov. 19, the day before the disclosure.

Within the 90-day window for damages considered by federal securities law, HP's...
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