HP-Owned Mercury Settles Backdating Suit

In the largest settlement yet for a class action lawsuit concerning stock options backdating, Mercury Interactive will pay out $117.5 million to pension fund investors, the San Jose Mercury News reports. Mercury's counsel was quick to say that the company was not admitting liability despite agreeing to the settlement. Hewlett-Packard acquired Mercury Interactive last year for $4.5 billion.

Although both parties have agreed, the settlement must still be approved by the court. "We are satisfied...that the award will provide fair recompense to the investors who lost money as a result of Mercury's improper practices," said the plaintiff's counsel, who also speculated that HP may have pushed for the settlement because it was Mercury, not HP, that was accused. (More Mercury Interactive stories.)