NEW YORK--(BUSINESS WIRE)--Zamansky & Associates LLC announces that it is investigating the Hewlett-Packard Company’s (NYSE: HPQ) (“Hewlett-Packard” or the “Company”) 401(k) plan for potential violations of the Employee Retirement Income Security Act (“ERISA”). ERISA imposes fiduciary duties on how companies manage and administer their 401(k) and retirement plans for employees. The investigation concerns whether the Company breached fiduciary duties by failing to provide sufficient disclosure to employees who were plan participants, imprudently managing the plan and through other self-dealing.
On August 18, 2011, Hewlett-Packard announced its third quarter fiscal 2011 financial results and issued revised guidance. Hewlett-Packard also announced several major shifts in its long-term business model, including that it "will discontinue operations for webOS devices, specifically the TouchPad and webOS phones." This sudden announcement followed the President and CEO’s resignation earlier for violations of Company policy, and HPQ’s stock price declined $1.88 per share, to close at $29.51 per share. This news led to shareholder derivative and fraud lawsuits filed against Hewlett-Packard.
The shareholder lawsuits allege that the Company made materially false and misleading statements to investors regarding its business and financial results from November 22, 2010 and August 18, 2011. During this time, the Company reported growing revenues and income, and its stock price rose from $27 per share in March 2009 to as high as almost $54 per share in April 2010. The lawsuits accuse the Company of artificially causing this price rise, through false disclosures and other improper acts.
Since the beginning of 2011 Hewlett-Packard’s stock price fell from over $48 per share to recently under $15 per share, well below its 2009 low trading price. Hewlett-Packard employees who invested in Company stock through the plan may have purchased at an artificially inflated price or otherwise been damaged. Company employees have rights under ERISA that have not been asserted in the existing shareholder lawsuits.
What You May Do
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About Zamansky & Associates
Zamansky & Associates is one of the leading law firms specializing in ERISA and financial services arbitration and litigation. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
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