Settlement ends five-year securities lawsuit over HP’s printer supplies business, covering investors worldwide.
HP has agreed to pay $39 million (€36.2 million) to settle a shareholder class action in the United States, ending five years of legal battles over claims that the company misled investors about its printing supplies business.
The case, filed in November 2020, accused HP of making false and misleading statements between November 2015 and June 2016 that artificially inflated its share price. Investors alleged that HP concealed weaknesses in supplies demand, leaving shareholders exposed when the truth emerged.
The Maryland Electrical Industry Pension Fund acted as lead plaintiff, with Robbins Geller Rudman & Dowd LLP as counsel. HP denied wrongdoing throughout but has agreed to settle “to avoid the costs, risks, and uncertainty of further litigation.”
The legal journey has been long and complex. In 2022, the case was dismissed on statute of limitations grounds. But in April 2023, the Ninth Circuit Court of Appeals revived the action, sending it back to the California district court. HP’s renewed attempt to dismiss the case was only partly successful, leaving key claims alive. The company also sought interlocutory appeals in 2024, stretching the litigation into its fifth year.
Formal mediation took place in April 2025. Talks continued into the summer, with both sides eventually accepting a mediator’s proposal in July to settle the case for $39 million. The agreement was signed at the end of that month.
Under the settlement, funds will be distributed to all investors – US and international – who bought HP shares between 5 November 2015 and 21 June 2016. Excluded are HP, its directors and officers, their families, and any entity they controlled.
After court approval of fees and expenses, the remainder will be shared among eligible claimants. Any unclaimed funds after distribution will be donated to the Council of Institutional Investors, a non-profit advocating for shareholder rights.
For investors, the payout represents about 25% of the estimated maximum damages of $155.5 million (€144 million). That figure is far higher than the 2024 median in securities cases, where settlements typically recovered just 1.2% of alleged losses.
The case highlights the risks of shareholder litigation. Securities actions are, in the words of the court, “notoriously uncertain.” Lead plaintiff’s lawyers stressed that further appeals, expert battles, and trial could have stretched for years, with no guarantee of recovery.
A final approval hearing is set for 26 September 2025 before Judge Jeffrey S. White in California. If approved, payments will be made once claims are processed.
For HP, the settlement closes another chapter in a long history of disputes linked to its supplies model. For investors, it delivers a recovery that is considered well above average in this type of litigation.
