HP Reaches $39 Million Settlement Over Alleged Securities Fraud

HP Inc. has reached a $39 million settlement with shareholders over claims of fraudulent statements made about its supplies business. The settlement resolves allegations that the company misled investors about the financial performance of its ink and toner cartridge business. The deal marks the end of a long-running lawsuit filed by investors who claimed HP engaged in a scheme to artificially inflate the value of the business.

HP Inc. (NYSE: HPQ) has reached a $39 million settlement with shareholders over allegations of fraudulent statements made about its supplies business. The settlement resolves claims that the company misled investors about the financial performance of its ink and toner cartridge business. This deal marks the end of a long-running lawsuit filed by investors who alleged that HP engaged in a scheme to artificially inflate the value of the business [1].

The settlement comes after a series of financial reports and earnings misses from HP Inc. In the latest quarter, the company reported earnings per share of $0.71, missing the consensus estimate of $0.80, despite a year-over-year revenue increase of 3.3% [1]. The company has faced scrutiny from analysts and investors alike, with several firms lowering their ratings and target prices on the stock.

Institutional investors have shown strong interest in HP Inc. during the fourth quarter, with several firms boosting their positions. Versor Investments LP, for instance, increased its stake by 88.5%, acquiring an additional 41,700 shares [1]. Despite this increased interest, the company's stock has faced a challenging period, with shares down 0.7% on the day of the settlement announcement.

The settlement is a significant development for HP Inc., as it addresses long-standing allegations of misconduct. The company has faced criticism for its handling of the ink and toner cartridge business, which has been a key area of focus for investors and analysts. The settlement may help to rebuild investor confidence in the company, although the impact on the stock price remains to be seen.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-versor-investments-lp-purchases-41700-shares-of-hp-inc-nysehpq-2025-08-17/