Chill pill

14 October 2015 By Reynolds Holding

A judge has poured cold water on HP’s attempt to settle claims over its $2.7 bln Aruba purchase, slamming the practice of buying peace with fees. But suing bankers over conflicts provides better kindling. Efforts to cut deal litigation are simply blowing legal fires elsewhere.

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The Delaware Court of Chancery on Oct. 9 rejected the settlement of a shareholder lawsuit challenging Hewlett-Packard’s $2.7 billion purchase of Aruba Networks in March. HP had agreed to disclose additional information about the purchase and pay almost $400,000 in fees to the shareholders’ lawyers.

Court Vice Chancellor Travis Laster said the case against HP was weak and criticized the plaintiffs’ lawyers for failing to investigate thoroughly whether real wrongdoing occurred. He dismissed the lawsuit on the grounds that the lawyers had not adequately represented their clients.

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