HP says settlement agreement with DOJ will lower 3rd-qtr profit by 2 cents per share

HP reaches settlement agreement with DOJ

PALO ALTO, Calif. — Hewlett-Packard Co. said Monday that it expects a settlement agreement with the Department of Justice will lower its fiscal third-quarter profit by 2 cents per share.

The settlement, which still needs to be approved, relates to an investigation of the technology company’s GSA multiple award schedule contract and other allegations, all stemming from a complaint filed in an Arkansas district court in 2007.

HP said in a statement that it “denies engaging in any illegal conduct in connection with these matters.”

HP shares rose 9 cents to $47.65 in after-hours trading. The stock finished regular trading up $1.52, or 3.3 percent, at $47.56.