HP ($HPQ) $39M Investor Settlement
HP ($HPQ) has agreed to a $39M settlement with investors over claims it misled them about its printing supplies business, particularly around inventory and sales practices that inflated revenue.
Outline:
HP assured investors that its printing supplies segment remained stable despite industry headwinds. Investors later alleged the company failed to disclose declining demand and excess inventory in its distribution channels. As the company revealed weaker sales and channel overstocking, the stock fell sharply. Investors filed suit and HP later agreed to a $39 million settlement.
Timeline:
June 21, 2016: HP held its Securities Analyst Meeting and emphasized stability in supplies revenue.
June–September 2016: Reports suggested demand for HP’s supplies was declining while the company continued to reassure investors.
September 30, 2016: HP disclosed weaker supplies sales and overstocking issues in its distribution channels.
October 5, 2016: $HPQ dropped nearly 10% following the disclosures.
November 9, 2020: Investors filed a securities class action in the Northern District of California.
August 19, 2025: HP agreed to a $39 million settlement to resolve the claims.
Background:
HP’s printing supplies segment, which includes toner and ink cartridges, has historically been a major contributor to the company’s revenue. During 2015 and 2016, the company told investors that demand for these products remained stable despite broader declines in the printing industry.
Investors later alleged that HP was experiencing weakening demand in the supplies business and had increased shipments to distributors to maintain reported revenue levels. According to the claims, this practice created excess inventory in the company’s distribution channels.
By September 2016, HP disclosed that sales in its supplies segment were weaker than previously indicated and acknowledged inventory buildup in its sales channels. These disclosures raised concerns about the sustainability of earlier reported revenue performance.
Following the announcements, $HPQ declined significantly. Investors alleged the company’s earlier statements about the health of its supplies business and demand trends were misleading.
What Can Investors Expect Now?
HP agreed to a $39 million settlement with $HPQ investors to resolve claims tied to statements about demand and inventory levels in its printing supplies business.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired HP Inc. common stock during the Class Period (November 5, 2015 – June 21, 2016) and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.20 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.80 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.