HP Investors Sue to Stop Compaq Deal

Hewlett-Packard Co. shareholders sued to stop the computer maker’s proposed $21.9-billion purchase of Compaq Computer Corp., saying executives withheld information about the risks of merging.

The shareholders claim the company and its officers and directors omitted material information in proxy papers about the proposed acquisition, according to a news release distributed by law firm Weiss & Yourman.

The complaint, filed Feb. 11 in federal court in San Francisco, seeks to stop the March 19 merger vote until a corrected proxy statement is issued and shareholders are compensated for the mistake.