Hewlett-Packard Co has agreed to pay $57 million to settle a class action lawsuit from 2011.
The lawsuit claimed former management defrauded shareholders by abandoning a previously discussed business model.
CEO Leo Apotheker announced to investors on August 18, 2011 plans to "refocus" HP's business services and products according to Reuters.
He also confirmed plans to pay $11.1 billion for British software company Autonomy Plc, scrap WebOS, and possibly spin off HP's personal computer business.
WebOS was obtained by the company back in 2010 when it bought Palm Inc.
The company also stopped sales of the TouchPad after only seven weeks.
"HP has reached a mutually acceptable resolution through a mediated settlement," said Sarah Pompei, an HP spokeswoman, according to Reuters.
HP will deposit $57 million into an "interest-bearing" escrow account within 20 days of getting an approval by the U.S. District Judge Andrew Guilford in Santa Ana, California as part of the agreement, according to Reuters.
Plaintiffs include: the Arkansas Teacher Retirement System, Ontario; the LIUNA National Pension Fund and LIUNA Staff & Affiliates Pension Fund in Washington, D.C., the Labourers' Pension Fund of Central and Eastern Canada in Oakville, and Union Asset Management Holding AG in Frankfurt, Germany.
"We are very happy with the settlement and are glad to have achieved this recovery for the affected HP shareholders," said Jonathan Gardner, co-lead counsel for the class, according to Reuters.
HP relies on personal computers currently, but it is hoping to move toward computing equipment and networking gear for enterprises to increase revenue, according to the report.
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