Hewlett-Packard Company (NYSE:HPQ) has decided to sue the UK arm of Deloitte under allegations of misrepresentation and a number of other accounting faults.

The software company Hewlett-Packard Company (NYSE:HPQ) had acquired the auditing autonomy but soon realized that Deloitte was misrepresenting its financial figures, causing the company to take such a measure against Deloitte. On the other hand, Deloitte considers these allegations false and has agreed to provide powerful evidence to prove its innocence.

The strong allegations by Hewlett-Packard Company (NYSE:HPQ) have caused the US Securities and Exchange Commission and the Federal Bureau of Investigation to start an in-depth investigation of the matter. Apart from these two authorities, the Serious Fraud Office of UK has also launched an investigation to figure out the truth.

At a hearing held in San Francisco on Monday, the district judge questioned an agreement between Hewlett-Packard Company (NYSE:HPQ) and plaintiff shareholders which was aimed to settle a lawsuit filed against Hewlett-Packard Company (NYSE:HPQ) over acquisition of Autonomy. However, this deal could not be signed and as a result the shareholder attorneys were not able to earn the millions of dollars fee under the settlement.

The US district judge also decided to conduct an inquiry to further investigate this issue and find out if the claims against the officers of Hewlett-Packard Company (NYSE:HPQ) were fair for the shareholders. The settlement which was agreed upon in June was aimed to drop the claims against these officers which included several executives and board members. Moreover, it was agreed upon that once the claims would be dropped Hewlett-Packard Company (NYSE:HPQ) would help the shareholder attorneys to file claims against former Autonomy executives.

This settlement was highly criticized especially by the former Chief Financial Officer, whose attorney requested in court to be allowed to review documents which whitewashed the wrongdoings of several officers. Similarly, other  former executives have also registered such requests before the court.

However, the lawyer of Hewlett-Packard Company (NYSE:HPQ) highly doubted the ability of this attorney to review the documents of the company.  Moreover, officials of the company have reported that Hewlett-Packard Company (NYSE:HPQ) would continue with the process of settlement of shareholder litigation.

The decision of granting permission to review documents stills lies with the US district judge who would decide in the next hearing whether the attorney of the former CFO would be granted permission to officially interfere in the case.

Even if these attorneys are not granted permission to interfere, the district judge has announced that he would consider the evidence provided against the officers of Hewlett-Packard Company (NYSE:HPQ) to determine if the deal that pardoned them was fair to the shareholders.

Hewlett-Packard Company (NYSE:HPQ) announced a write-down of $8.8 billion in November 2012 and alleged the Autonomy executives of committing accounting fraud worth $5 billion. Deloitte continues to deny these claims and is fully prepared to present evidence. The next hearing will be held next month and would reveal more about this case.

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