HP confirms Autonomy probe on alleged fraud

The US justice department has opened an investigation relating to Autonomy Corp after Hewlett-Packard accused the software company of misrepresenting its performance before being bought last year.

Department representatives told the company on Nov 21 of the probe, Hewlett-Packard said in its annual 10-K regulatory filing. The computer maker booked an $8.8bn (€6.75bn) writedown related to Autonomy last month after finding some revenue had been recorded prematurely or improperly.

Hewlett-Packard is co-operating with authorities while chief executive officer Meg Whitman works to turn the company around after years of botched deals, management tumult, and strategic missteps.