U.S. Department of Justice Investigates HP’s Autonomy Unit

U.S. Department of Justice Investigates HP’s Autonomy UnitThe US Department of Justice is investigating Hewlett-Packard’s (HP) Autonomy unit, as reported on Thursday.

The HP, November, said that it suffered a fraud in accounting that was related to $11.1 billion acquisition of British software specialist Autonomy. The company is almost silent on the matter and is expected that it has nothing more to say about the Autonomy deal in 2013.

All the signs are suggesting that company is silent about all the allegations while the legal authorities are investigation them. HP is still silent after it previous allegation about the fraud allegations. This may also prove to be a distraction in 2013; therefore that can be the reason why HP is silent. However, no confirmation to the same has been made.

In November, the firm reported an $8.8 billion fourth quarter set down of Autonomy that erased most of the values of the software analytics unit to the shareholders. HP said that the allegations relate to Autonomy’s recognition of revenue and the investigation was opened after the Autonomy Executive brought forward the fraud.

“HP is disappointed to find that some former members of Autonomy used accounting improprieties, misrepresentations and disclosure failures to inflate the underlying financial metrics of the company, prior to Autonomy's acquisition by HP”, said HP in November.