Hewlett-Packard reportedly has agreed to pay $57 million to settle a lawsuit claiming its former CEO, Leo Apotheker, hurt shareholders through his abrupt shifts in the company’s focus.
The suit, filed in federal court in California’s central district, claimed that HP investors were caught off guard when Apotheker halted sales of its TouchPad and announced plans to scrap its WebOS software, after enthusiastically touting both products.
Apotheker, who was fired over his various corporate missteps, was replaced in September 2011 by HP’s current CEO, Meg Whitman.
Reuters reported Monday that the settlement amounts to $57 million. It will be paid to a group of plaintiffs that include the Arkansas Teacher Retirement System and several pension funds.
In a brief statement, HP said only that it has “reached a mutually acceptable resolution through a mediated settlement.”
Photo by Kristina Sangsahachar, Daily News