HP-Owned Mercury Settles Backdating Suit

$117.5 award in class action case is largest yet for options mischief
By Nick McMaster,  Newser Staff
Posted Oct 15, 2007 11:53 PM CDT
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(Newser) – In the largest settlement yet for a class action lawsuit concerning stock options backdating, Mercury Interactive will pay out $117.5 million to pension fund investors, the San Jose Mercury News reports. Mercury's counsel was quick to say that the company was not admitting liability despite agreeing to the settlement. Hewlett-Packard acquired Mercury Interactive last year for $4.5 billion.

Although both parties have agreed, the settlement must still be approved by the court. "We are satisfied...that the award will provide fair recompense to the investors who lost money as a result of Mercury's improper practices," said the plaintiff's counsel, who also speculated that HP may have pushed for the settlement because it was Mercury, not HP, that was accused.