A CLASS ACTION LAWSUIT filed by shareholders of erstwhile PDA maker Palm has been settled out of court by HP for $57m.
The complaints stemmed from HP's treatment of the Linux-based operating system WebOS, which the company had promised to continue developing when it acquired Palm.
However in August 2011, then HP CEO Leo Apotheker reversed course, announcing that the company would refocus on business services and products and abandon development of WebOS.
The announcement resulted in HP withdrawing its Touchpad from the market after just seven weeks, leading to a series of fire sales on WebOS based tablets, many of which were then hacked and repurposed to run Android.
This was one of a series of allegedly broken promises made by HP, complained the lawsuit, which HP settled after agreeing to deposit $57m into an interest bearing escrow account within 20 days of the settlement being approved by US District Court Judge Andrew Guildford.
"HP has reached a mutually acceptable resolution through a mediated settlement," said HP spokesperson Sarah Pompei in a statement to Reuters.
A $57m settlement is a relatively inexpensive resolution, especially for a company as large as HP. With the last vestiges of Palm now sold off to Qualcomm, this settlement should allow HP to draw a line under the whole affair. µ