The judge also agreed with HP that the shareholders hadn’t plausibly alleged that the company knowingly or intentionally made misleading statements about its printing supplies business. Ruling on HP’s second motion to dismiss, Illston said shareholders failed to show how the company made misleading statements about its toner based products' market share and the stabilizing of its printing supplies unit’s revenue, among other aspects of the business. HP paid $6 million in September 2020 to settle those claims without admitting or denying them. Securities and Exchange Commission over allegations that the company concealed efforts to boost sales of printing supplies in order to meet quarterly sales and earnings targets. The complaint also cited charges HP faced from the U.S.

The investors said they were suing to recoup losses they allegedly suffered when HP’s share price plummeted after the company disclosed corrected financial information for the printing supplies unit. The complaint claimed the company failed to disclose limitations in its model for assessing the state of the printing supplies business’ revenue. Rhode Island’s Office of the General Treasurer initially sued HP in February 2020 on behalf of HP shareholders Employees’ Retirement System of Rhode Island and Iron Workers Local 580, according to Wednesday’s ruling.Īfter Illston dismissed the first amended complaint in March, the HP shareholders filed a new amended complaint accusing the company of misleading investors about the company’s print supplies channel inventory management and sales practices. Neither did defense lawyers at Gibson, Dunn & Crutcher attorneys advising HP or a company representative. The investors’ attorneys from Kessler Topaz Meltzer & Check and Bernstein Litowitz Berger & Grossmann did not respond to requests for comment on Thursday. District Judge Susan Illston in San Francisco said on Wednesday that she was granting HP’s motion to dismiss the proposed securities class action because the amended complaint failed to adequately allege that HP had made misleading or false statements. (Reuters) - A California federal judge has thrown out HP investors’ amended lawsuit alleging that the company misled investors into believing the financial performance of its printing supply business was improving.

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