Appeals Court Rules That HP Must Face Shareholder Lawsuit Over Sales

A U.S. appeals court on Tuesday revived a lawsuit alleging HP Inc. defrauded shareholders by secretly using unprofitable tactics to boost sales of its printing supplies in 2015 and 2016.

The 9th U.S. Circuit Court of Appeals reversed a judge’s ruling dismissing the lawsuit as filed too late. Investors say they did not discover the alleged fraud until the U.S. Securities and Exchange Commission fined HP $6 million over its sales practice disclosures in September 2020.

Darren Robbins, an attorney for the pension fund leading the case, said the opinion will help investors.

“By their very nature, misrepresentations inhibit investors from discovering corporate misconduct,” he said.

Read the source article at insurancejournal.com