This excerpt taken from the HPQ 8-K filed Jan 27, 2010.
Item 8.01. Other Events
As previously reported in the reports filed by Hewlett-Packard Company (HP) under the Securities Exchange Act of 1934, as amended, Electronic Data Systems Corporation (EDS), a company that HP acquired in August 2008, and EDS Limited (UK) (EDS UK), one of EDSs subsidiaries, are defendants in litigation filed in the United Kingdom by Sky Subscribers Services Limited and British Sky Broadcasting Limited (collectively, BSkyB) in 2004 alleging deceit, negligent misrepresentation, negligent misstatement and breach of contract. The claims arose out of a customer relationship management project that was awarded to EDS in 2000, the principal objective of which was to develop a customer call center in Scotland. On January 26, 2010, the court issued a decision finding EDS UK liable to BSkyB for deceit in one area of the claim, for negligent misrepresentation and negligent misstatement in another area of the claim, and for breach of contract. The court also dismissed all of BSkyBs other claims. The court will issue a final quantification of damages at a later date. HP plans to seek leave from the court to appeal the decision. HP previously established a reserve in connection with this matter and believes that the reserve remains materially adequate. HP will continue to evaluate that reserve pending final resolution of this matter.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.