HP Plunges on $8.8 Billion Charge From Autonomy Writedown

Hewlett-Packard Co. accused Autonomy Corp., the software maker it bought last year, of a broad range of financial falsehoods resulting in an $8.8 billion writedown, adding to challenges facing Chief Executive Officer Meg Whitman in the midst of a multiyear turnaround. Shares plunged.

More than $5 billion of the charge relates to accounting missteps, including improperly categorized hardware, Hewlett-Packard said. The rest is linked to Hewlett-Packard’s share value and projections that the deal won’t meet expectations, said the company, which also forecast fiscal first-quarter profit that missed analysts’ estimates.