HP’s Revenue Prediction Model Withstands Investors’ Challenge

HP Inc. investors failed to show the company’s revenue estimation model was misleading, a federal district court in California said.

The Electrical Workers Pension Fund, Employees’ Retirement System of Rhode Island, and Iron Workers Local 580 said the company violated the Securities Exchange Act by failing to disclose the lack of reliable data in its supplies revenue model. But the plaintiffs didn’t adequately show why HP’s alleged misstatements were misleading, the U.S. District Court for the Northern District of California said in its decision to dismiss the complaint.

HP’s “Four Box Model” allowed the company to assess its supplies revenue ...