HP-Autonomy Lawsuit Accord’s Fairness Questioned by Judge

Hewlett-Packard Co. hit another snag in its attempt to resolve a shareholder lawsuit over its botched acquisition of Autonomy Corp.

U.S. District Judge Charles Breyer in San Francisco, who earlier held up approval of the settlement over how much lawyers would be paid, today told company attorneys he’s concerned the deal would rob investors of the right to sue management over matters unrelated to the purchase. He said a provision shielding Hewlett-Packard managers from blame for an $8.8 billion writedown connected to the merger is “staggering in its breadth.”