SAN FRANCISCO (Legal Newsline) – The securities class action law firm Robbins Geller has filed suit against HP and its former leadership over the revenue generated by its supplies division.
York County, Pa., is the plaintiff in the case, filed Nov. 5 in California federal court. The case is filed on behalf of its retirement fund for public employees.
It complains that a 2016 stock drop of more than 5% hurt investors who were misled by the company’s representation of its supplies division’s success.
“HP’s channel inventory management and sales practices resulted in the sale of supplies to customers that did not need or want the product in order to artificially increase revenues and profits,” the suit says.
“HP’s channel inventory management and sales practices resulted in the sale of supplies to customers outside of designated regions at unsustainable discounts in order to artificially increase revenues and profits.”
In June 2016, the company announced it would reduce supplies channel inventory by $450 million, the suit says. By June 22 of that year, its stock had fallen close to $13 per share.