HP Investors $10.5M Settlement

HP agreed to settle $10.5 million with investors.

The claims arose from Defendants' misrepresentations and omissions regarding HP's Supplies business strategy's fundamental changes, known as the "four-box model." The Company had been measuring its Supplies business using this model for several years.

Throughout the Class Period, Defendants allegedly falsely emphasized the four-box model's accuracy and reliability in determining demand and revenue in the Supplies business. They reassured investors that HP had a "clear line of sight to supply stabilization" based on the model. Defendants allegedly made false and misleading statements to investors about the four-box model's reliability and the Supplies business's revenue growth. They touted their "continued confidence in the predictive value of the four-box model" and stated that the Company's "Supplies revenue is in line with the expectations that we set, and that our 4-box model continues to drive predictability."

As a result of Defendants' alleged misrepresentations, HP's common stock shares traded at artificially inflated prices during the Class Period.