FSoftware company TSE 250 Microfocus has agreed to pay shareholders $ 15million (£ 10.9million) who sued it over its takeover of parts of HP’s former Autonomy business, reports Matthew Champ.
Microfocus said it had agreed to settle the shareholder dispute in New York, although it said it continued to deny any wrongdoing.
The Newbury-based company has been hit with class action lawsuits after its botched takeover of parts of Autonomy from HP for £ 6.6bn in 2016.
The Autonomy business, founded by Mike Lynch, was sold to HP in 2011 for $ 11 billion, but was depreciated by $ 8.8 billion for accounting reasons. The founder of Autonomy has always denied wrongdoing.
Previously a member of the FTSE 100, Microfocus saw its share price plummet in 2018 – 46% in one day – after its CEO, who had joined HP, left after less than a year and had warned that his income would drop faster than expected.
He still faces an ongoing shareholder dispute in California. Microfocus said it was too early to say whether the litigation would have a financial impact.
The settlement came as part of Microfocus’ half-year results, where it reported revenues of $ 1.4 billion, down 4.6 pc. The company has reduced its losses, its operating loss falling from $ 906.7 million a year earlier to $ 154.8 million in the past six months, and has reduced its costs and net debt, which s ‘amounts to $ 4.1 billion.
Microfocus’ share fell 4% at the start of the session.