Software giant Micro Focus is sued by investors over its £6.5bn botched merger with Hewlett Packard
Software giant Micro Focus and its executives are being sued by investors
Software giant Micro Focus and its executives are being sued by investors in America over their botched £6.5 billion takeover of assets from Hewlett Packard Enterprise.
The FTSE 100 giant is the subject of two class actions alleging that investors were misled over the Hewlett Packard deal.
Micro Focus’s share price has plunged as integration proves more difficult than expected.
Both lawsuits, one from a pension fund and the other from private investors, are in their early stages.
Micro Focus, based in Newbury, Berkshire, has asked the courts to throw out the cases from the start. A spokesman said securities class action litigation was common in the US, adding: ‘We believe the allegations are meritless both on the facts and the law.’
Last week, the company’s annual report revealed it paid six directors £40 million in the 18 months to October, even though the share price halved in that time.