Shareholder sues HP for bailing on webOS, TouchPad

By on Sep 16, 2011 at 10:21 AM
Legal September 16, 2011

HP shareholder Richard Gammell has filed a class-action lawsuit against HP after the company made the drastic decision to kill off the TouchPad in August, which resulted in a 20% drop in share price the following day, Reuters reported. Gammell argued in the suit that HP failed to inform investors the webOS operating system was no longer a major part of the company’s plans moving forward, and that the company had revamped its business plan without telling shareholders. Those actions, Gammell argues, artificially inflated HP’s share price. Gammell is seeking damages for any HP investor who purchased stock between November 22, 2010 and August 18th, 2011.

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  • Prof. Peabody

    It seems like they have quite a solid point here.  

  • http://twitter.com/SParKlngCyaNide SparklingCyanide

    good!  I’m glad the shareholders are suing HP, they do have a good case.

  • http://claimid.com/155/ 155

    Why do they allow stupid lawsuits like this to exist in America?

    You realize that lawsuits by shareholders only harm the company they are holding right?  The money they are going to use to fight the lawsuit, settle, etc will all come from the shareholder’s own capital.

    It’s ridiculous.  If shareholders are unhappy with a company they should dump the management plain and simple or vote with your feet if you aren’t a big enough shareholder.

    Shareholders elect the people who hire the management in the first place. When the people you hire screw up, you fire them. You don’t turn around and sue yourself.

    • 196colorado

      This isn’t about the money, it’s about running a company.  If there were no lawsuit then management could continue to do whatever they want and run the company into the ground.

      The shareholders have very little to say about who is on the board, so besides a lawsuit, the best thing they can do is sell shares and invest in other companies, which is what has happened to drive the share price down so low . . .

      • http://claimid.com/155/ 155

        Do you really think that this lawsuit is going to make any difference?  I’ve worked for publicly traded companies.  At a small publicly traded company, they immediately look at the shareholder list, realize the guy only owns 100 or 500 shares out of a million or whatever number way less than 1% and then laugh about the crazy guy, cause most of their shareholders are not objecting.  At a big company, this probably never leaves the general counsel’s office.  You can’t run a company without having a couple crazy shareholder lawsuits.

        Sane shareholders don’t act this way, because all it does is waste their own capital.  It’s usually some jerk with a lawyer looking for a quick payoff hoping for a settlement.  Real activist shareholders demand a seat on the board or a buyback of their stock to avoid a takeover, not damages.

      • Anonymous

        HP gave the WebOs no time on the market, but a long time gestating the product, if want to talk about sanity, this is a tricky one.

      • Dextermorph

        I dont have time to write what i want to so ill sum it up…youre a douche

      • http://claimid.com/155/ 155

        netnerd258 – Might be true, but this is not an effective or useful solution to that problem.

        Dextermorph – I can live with that. :p

    • http://twitter.com/TuckerPeterson Tucker A. Peterson

      Shareholders or stockholders have certain privileges depending on the type of stock but are not true owners, claimants of any profit or investors contributing to capital.  The have certain rights like selling shares, voting on directors nominated by the board, nominating directors etc.  Nowhere does it state that they have the right to make day to day business decisions for a company.

      Stakeholders on the other hand is a different story and this guy is not one of them so poo poo on you homie.

  • Anonymous

    HP has not had legit devices/software since I dunno when, maybe 6 years ago?  This ‘puter I am on, the mother board had gone to crap within its first year!  Really?!?!  Had to replace w a diff motherboard (good thing I know how to do that!) instead of spending another 500+ on a new one!!  Their touch-printers…ummm how about they jam on the FIRST print and they do not even connect to your wireless anything?  HP sucks.  Just like that idiots face–they don’t care!  Step aside HP, you’re just like RIM.

  • Anonymous

    Why is he wearing Sarah Palin’s glasses [looks FemmÄ“]?

  • http://twitter.com/premonition jubert

    forget about the shareholders, what the heck is up with that facial expression lol

    • Anonymous

      I think he *sees Russia*

  • Mo

    bring webOS back!

  • Anonymous

    I think HP hardware is crap.  Its sad because HP used to make terrific hardware.  That being said, killing WebOS, in the current corporate culture, was absolutely the best thing to do from a management perspective.  Had HP not killed WebOS and Touchpad it would be in the same boat a year from now as RIM is right now.  

    You just don’t get multiple quarters to launch new products anymore.  They have to be instant successes. 

    • Anonymous

      webOS wasnt killed, the hardeware was check your facts before you post.

  • http://www.TheGuruReview.net TGR

    Like I said, they need to fire the CEO because he is a moron.  Furthremore, for them to get rid of the previous CEo based on BS issues was crazy.

  • Lawrence of Arabia

    -19% here… Good thing I had apple too.
    I think HPQ is my biggest lost ever.

  • Anonymous

    I love all this hp touchpad drama!

  • charlie

    if this case goes in favour of that person, then even Nokia share holders and  employees should get more money. because Nokia shuttered OS which was having largest market share and even now selling well and better than windows phone os. Some one from Nokia or shareholders should file a similar kind of suite.

  • http://MobileGenius.wordpress.com JM

    I have repeatedly said that in the past few years, especially in regard to Palm and WebOS, HP executives have essentially been behaving recklessly. This suit might have some merit. 

  • Dan

    They don’t have a case, this is a stupid lawsuit that should not have been filed, it wastes time, money and the court’s time.  The management has a right to make decisions regarding the operation of the company.  Shaerholders have a right to elect directors who hire the managment.  Unfortunatley this is an example of what is wrong with our legal system.  As an attorney I am disgusted that these type of wastefule lawsuits are filed.

  • Anonymous

    The guy had an ipad what did he expect.

  • CrossWired

    Leo just ate a frog, and looks smug about it. What ‘s with the face?

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