Former CEO of Hewlett-Packard, Leo Apotheker, found himself defending his decision to proceed with the $11 billion acquisition of the UK software company, Autonomy, in 2011. This acquisition, which later turned disastrous, marked a significant point in Apotheker’s career at HP.
The 70-year-old business executive took the witness stand, stating that had he known Autonomy allegedly misrepresented its financial data, he would not have moved forward with the purchase. Shockwaves from the ill-fated deal are still felt today, as federal prosecutors accuse Autonomy’s CEO, Michael Lynch, of fabricating financial records.
Interestingly, Apotheker maintained that he made the deal recommendation based on the financial data relayed by Autonomy. As these legal showdowns highlight the complex web of corporate decision-making, they serve as a reminder for all legal professionals about the paramount importance of diligence in mergers and acquisitions. For a comprehensive understanding and further reading, you can visit the original article on law.com.