Jesse Jackson Jr. resigns, acknowledges federal investigation

Rep. Jesse Jackson Jr. submitted a letter of resignation to House Speaker Boehner Wednesday, following a lengthy medical leave of absence.

Rep. Jesse L. Jackson Jr. resigned from Congress on Wednesday, saying in a letter that he is cooperating with a federal investigation "into my activities" but blaming his health problems for his decision to step down just two weeks after his reelection.

Jackson's letter to House Speaker John A. Boehner was his first acknowledgment of the ongoing corruption inquiry into his  alleged misuse of campaign dollars.

"I am doing my best to address the situation responsibly, cooperate with the investigators, and accept responsibility for my mistakes, for they are my mistakes and mine alone," Jackson said in the two-page letter dated Nov. 21. "None of us is immune from our share of shortcomings or human frailties and I pray that I will be remembered for what I did right."

Despite his admission of "my share of mistakes," Jackson said his deteriorating health was the reason he was quitting. He has been on medical leave since June while receiving treatment for bipolar depression.

PHOTOS: 2016 presidential possibilities

"Against the recommendations of my doctors, I had hoped and tried to return to Washington and continue working on the issues that matter most to the people of the 2nd District. I know now that will not be possible," Jackson said in the letter.

"My health issues and treatment regimen have become incompatible with service in the House of Representatives. Therefore, it is with great regret that I hereby resign as a member of the United States House of Representatives, effective today, in order to focus on restoring my health," Jackson wrote.

The congressman could not be reached for comment.

Jackson, 47, won election this month while being treated at the Mayo Clinic in Rochester, Minn.  He issued a statement on election night saying he would return to work once his doctors approved.

"Once the doctors approve my return to work, I will continue to be the progressive fighter you have known for years," said Jackson, who is no longer a patient at Mayo. "My family and I are grateful for your many heartfelt prayers and kind thoughts,” he said at the time. “I continue to feel better every day and look forward to serving you."

He has not appeared in the House since June 8. Nor did he stage a campaign event -- or even run a TV ad. Jackson advanced to the general election after defeating a one-term member of Congress, Debbie Halvorson, in a March primary.

PHOTOS: America goes to the polls

The next Congress will be sworn in Jan. 3 and Jackson would have been required to take the oath of office before being allowed to vote.

News of the resignation on the eve of Thanksgiving, when Congress was not meeting and many Washingtonians were traveling, seemed to take even Jackson staffers by surprise.
 
His press secretary, Frank Watkins, said Wednesday morning that he didn’t know anything about a possible resignation. Watkins attributed the rumors to press speculation.

House Minority Leader Nancy Pelosi (D-San Francisco) said in a statement that she had spoken to Jackson and his father, the Rev. Jesse Jackson, in the afternoon.
 
“As he works to address his health, our thoughts and prayers are with him, his wife, Sandi, his children as well as his parents," she said in a statement. "We are grateful to him and his family for their long-standing record of public service to our country."

The House adjourned Friday and reconvenes at 2 p.m. Tuesday.  Protocol calls for Jackson's letter to be placed before the House on Tuesday and his resignation noted then, an official said. Normally the House has 435 members, but there is already one vacancy, so Jackson's will be a second.

Under Illinois law, Gov. Pat Quinn, a fellow Democrat, would call a special election to fill Jackson’s 2nd District congressional seat, which extends from Chicago’s South Side to Kankakee.

Jackson's resignation, long expected by political insiders, set off a scramble with as many as a dozen names of potential successors already surfacing. They range from political has-beens to up-and-comers in the south suburban district.

Jackson has been under investigation by the House Ethics Committee for alleged improprieties related to his bid to win appointment in 2008 to the Senate seat that had been held by President Obama. A Jackson emissary is alleged to have offered to raise up to $6 million in campaign funds for disgraced former Gov. Rod R. Blagojevich in exchange for the governor appointing Jackson to the Senate seat.

Blagojevich is serving a prison term for corruption convictions, including trying to sell or trade the Senate seat.

After the March primary election, the congressman’s aides belatedly announced his medical leave, which at first was blamed on “exhaustion.”

He is the son of the Rev. Jesse Jackson, the civil rights leader, and the husband of Chicago Alderman Sandi Jackson, 7th Ward.

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Video: Watch the World's Oldest Digital Computer Get a Reboot

It runs using gas-filled tubes, mechanical relays, and paper tape. It’s a giant, and it’s slow. But it runs, dammit.

On Tuesday, volunteers at Britain’s National Museum of Computing rebooted the Harwell Dekatron — a 2.5-metric-ton monster from the early 1950s — making it the oldest working digital computer in existence.

It took about half an hour to warm the machine up. Then the volunteers — who’d spent the past two-and-a-half years rebuilding the machine — fed in a program via paper tape. Gas-powered tubes lit up. There was some clicking and clunking. Lights flashed. And then the 61-year-old printer typed out the answer to a simple multiplication problem — its first job since the 1970s.

Two of the Dekatron’s original designers and a few of its former operators were on-hand yesterday at the National Museum of Computing’s Bletchley Park home to catch the reboot. “The machine worked perfectly,” says Kevin Murrell, who’s led the restoration effort.

The machine was built in 1951, and it served for six years as a number-cruncher for the U.K.’s main atomic research facility at Harwell. “This was used in the very early days of modeling atomic power plants,” Murrell says. It could do complex equations flawlessly, at about the speed of two mathematicians armed with mechanical calculators.

In 1957, the giant computer was shipped of to the nearby Wolverhampton and Staffordshire Technical College, where it served as a comp-sci teaching tool for a couple of more decades. That’s where it picked up the name the WITCH (Wolverhampton Instrument for Teaching Computing from Harwell). Then, in 1973, the Guinness Book of World Records proclaimed it the world’s most durable computer. It was eventually mothballed in a museum.

About three years ago, Kevin Murrell was looking through photos of computer components the National Museum of Computing had in storage. Something popped out. “In the corner of one picture was a little control panel,” he remembers. “I looked at this an thought I know this control panel. That’s the machine I remembered from all those years ago.”

Amazingly, about 95 percent of the machine was still in the collection. So after a few years of cleaning the machine’s 4,000 connectors, and 828 Dekatron tubes, rewiring and repairing power supplies, the historic computer was good to go.

It uses gas-filled Dekatron counting tubes instead of the transistors you’d find in modern computers. As the six-person restoration team discovered, these tubes held up amazingly well after more than 60 years.

The clear tubes store values in one of 10 cathodes, grouped in a circle around a central node, so you can actually see what’s in memory. This combined with the Dekatron’s plodding pace, makes it a remarkable computer teaching tool, Murrell says.

“You can look at the memory location and say, ‘Yes, that contains the number three.’”

Watch the Harwell Dekatron in action here:

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Tom Hanks, Will Farrell offer custom recordings

NEW YORK (AP) — Imagine having William Shatner supply your outgoing voicemail message. Or maybe you’d prefer Morgan Freeman coolly telling callers to wait for the beep. Or perhaps having Betty White joke around is more your speed.

All it takes is $ 299 and some luck.

The advocacy group Autism Speaks is offering custom-recorded messages from those celebrities as well as Will Ferrell, Carrie Fisher, Tom Hanks, Derek Jeter, Leonard Nimoy, Patrick Stewart and Ed Asner.

From Dec. 3 to Dec. 9, a limited number of 20-second long MP3 messages will be recorded by each celebrity on a first-come, first-served basis for fans to do with as they wish. All requests must be of the PG variety.

Asner, the curmudgeonly Emmy Award winner of “The Mary Tyler Moore Show” and “Lou Grant,” dreamed up the unusual fundraiser with his son Matt, who works for Autism Speaks.

“I think people will get a charge out of it,” says Asner, who is currently on Broadway in the play “Grace.” ”I’ll probably say, ‘What are you wearing?’ Or, ‘Take it off.’ Something like that.”

All proceeds will support autism research and advocacy efforts.

If he could get a message from one of the other stars participating, which would Asner want?

“I’m awfully stuck on Will Ferrell, having been subjected to him in ‘Elf,’” Asner says. “But they’re all such standouts — Patrick Stewart, Leonard Nimoy, Shatner. The list doesn’t stop. Even Betty White,” he adds about his “MTM” co-star. “She’s still got some good left in her.”

Entertainment News Headlines – Yahoo! News

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Well: Yawning Begins Early, Though No One Is Sure Why

Everyone yawns. And we start yawning even before we are born.

Now, using ultrasound video recordings, researchers have worked out a technique to distinguish prenatal yawns from the simple mouth openings that we also engage in well before birth.

For the study, published on Wednesday in PLoS One, scientists scanned 15 healthy fetuses, eight girls and seven boys, at 24, 28, 32 and 36 weeks’ gestation. They distinguished yawns from jaw openings by the timing of the action and shape of the fetuses’ mouths. In all, they counted 56 yawns and 27 non-yawn mouth openings. By 36 weeks, the yawning had completely disappeared.

Why fetuses yawn is unclear — for that matter, it is unclear why adults yawn. In any case, the study’s lead author, Nadja Reissland, a developmental psychologist at Durham University in England, said that yawning in a fetus is different from yawning in adults.

“When you see a fetus yawning, it’s not because it’s tired,” she said. “The yawning itself might have some kind of function in healthy development. Fetuses yawn, and then as they develop they stop yawning. There’s something special in yawning.”

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A Retailer, Eileen Fisher, Shakes Off Storm’s Impact to Reopen

Richard Perry/The New York Times

For Eileen Fisher, the storm was the biggest blow to her company's operations since she opened it in 1984.

IRVINGTON, N.Y. — Eileen Fisher had no time to spare. For her clothing stores to be up and running for Thanksgiving weekend, and her many retail clients stocked for the holiday rush, her company’s response to Hurricane Sandy would need to be close to flawless.

Eileen Fisher

The flooding from Hurricane Sandy decimated an Eileen Fisher store in Irvington, N.Y., and forced the company to close its headquarters there.

And it was.

All but one of the company’s 58 stores are open, and retailers like Nordstrom and Bloomingdale’s have Ms. Fisher’s latest designs on their racks. On a recent afternoon, aside from its cramped quarters, there was no sign of the storm on the second floor of the Eileen Fisher headquarters here, 20 miles north of Manhattan. Phones were ringing, online orders were being processed and Ms. Fisher was at her desk.

But step downstairs, where work crews were sawing off the bottom part of walls, removing mold-ridden desks and pulling up drenched carpet, and the magnitude of the last month’s miracle was hard to dismiss.

“It was a mess,” Ms. Fisher said. “I couldn’t believe it.”

Hurricane Sandy hurt retailers large and small. It closed airports, ports and roads, jamming merchandise at critical shipping times. More than a third of stores in the Northeast closed for at least a day, according to the research firm RetailNext. Macy’s has said that the storm delayed sales. Target said November started off choppily, and a Kohl’s store in Brooklyn will be closed at least through January.

For Eileen Fisher, started by Ms. Fisher in 1984, the storm was the biggest blow to operations ever. It decimated a store here and closed her headquarters, her Manhattan design center and her warehouse in Secaucus, N.J. For smaller retailers — Eileen Fisher expects about $350 million in revenue this year — a week or two of closed offices, stores and warehouses in early November could be ruinous.

Recovery was both an urgent and daunting task. A broad insurance policy helped a lot. So did some planning and a good amount of luck. As did an almost out-of-body detachment on executives’ parts to see past the emotion of sewage-soaked shirts and stained rolls of fabric to the prize of reopening a ravaged business.

Even the cash in the register at the Irvington store had to be taken home and blown dry. Almost $1.5 million, 12 Dumpsters and eight moving-truck-size mobile storage units of damaged goods later, Eileen Fisher was — for the most part — back.

“It was just stuff,” Ms. Fisher said.

Perils of a New Location

Ms. Fisher moved her headquarters to Irvington 20 years ago, choosing a brick building that was just a couple of yards from the Hudson River. It reminded her of the TriBeCa location where she had started the business, she said, and who doesn’t get inspiration from water?

Now that inspiration had become a liability. On a recent sunny day, the Hudson seemed calm and threatless, a cool gray-brown river about 10 feet below its banks. But on the night of the storm, the river rose over a barrier and stampeded north, churning through buildings “like a washing machine,” said Peter Joslin, the company’s facilities manager.

Mr. Joslin is from the Midwest, and he’s seen his fair share of river flooding, including last year, when a corner of the building took on water during Hurricane Irene. In the week before Sandy hit on Monday, Oct. 29, he was watching the weather forecasts, but, as he says, “we’re pretty laid back down here.”

Then, on the Friday before the storm, he received an e-mail from his predecessor in the job. It contained just four words: “Get out them sandbags.”

“That started to freak me out,” Mr. Joslin said.

He called the owner of a remediation company that had done work for Eileen Fisher in the past and obtained a promise that if anything went wrong, the company would be on site within two hours. He then called a moving company to see if it could remove some important files and other valuables, like $20,000 copiers. The moving company was already booked.

Employees worked through the weekend, piling sandbags three high along the building, encasing the second floor of headquarters in plastic in case the roof leaked and caulking windows. The storm struck Monday night.

Assessing the Damage

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Feds charge former hedge fund manager in big insider-trading case

WASHINGTON -- Federal prosecutors on Tuesday charged a former hedge fund portfolio manager with securities fraud in connection with what they said was the most lucrative insider-trading case ever prosecuted.

In complaints filed in New York, authorities said investment advisors and hedge funds made more than $276 million in illegal profits or avoided losses by trading before the announcement in 2008 of negative results from clinical trials for an Alzheimer's disease drug being developed by Elan Corp. and Wyeth.

Prosecutors charged Mathew Martoma, a former portfolio manager at CR Intrinsic, an unregistered investment adviser, with securities fraud for allegedly illegally using information about the clinical trial results that he obtained from a neurologist at a hospital involved in the testing.

The criminal complaint did not name the neurologist, which it said was a cooperating witness in the case.

The Securities and Exchange Commission filed a a related civil suit Tuesday against Martoma, CR Intrinsic and Dr. Sidney Gilman, a neurology professor at the University of Michigan Medical School. The SEC suit said Gilman was chairman of the safety monitoring committee overseeing the clinical trials of the Alzheimer's drug.

Martoma met Gilman some time between 2006 and 2008 through paid consultations, the SEC complaint says. "During these consultations, Gilman provided Martoma with material, nonpublic information about the ongoing trial," the SEC complaint said.

In mid-July 2008, "Gilman provided Martoma with the actual, detailed results of the clinical trial" before an official announcement on July 29, 2008, the SEC said.

The FBI, SEC and U.S. attorney's office in New York scheduled a 12:30 p.m. EST news conference to discuss the case.

"The charges unsealed today describe cheating coming and going – specifically, insider trading first on the long side, and then on the short side, on a scale that has no historical precedent," said Preet Bharara, U.S. attorney for Manhattan.  "As alleged, by cultivating and corrupting a doctor with access to secret drug data, Mathew Martoma and his hedge fund benefited from what might be the most lucrative inside tip of all time."

Follow Jim Puzzanghera on Twitter and Google+.

Also:

Senate moves insider trading bill to Obama's desk.

Baseball star Eddie Murray settles insider-trading investigation.

Former Goldman Sachs director Rajat Gupta guilty of insider trading.

http://articles.latimes.com/2012/aug/17/business/la-fi-sec-murray-20120818

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Hacker Found Guilty of Breaching AT&T Site to Obtain iPad Customer Data

A hacker charged with federal crimes for obtaining the personal data of more than 100,000 iPad owners from AT&T’s website was found guilty on Tuesday.

Andrew Auernheimer, 26, of Fayetteville, Arkansas, was found guilty in federal court in New Jersey of one count of identity fraud and one count of conspiracy to access a computer without authorization.

The jury reached its verdict just hours after being sequestered.

Auernheimer tweeted to supporters that he expected the verdict and planned to appeal.

Auernheimer and Daniel Spitler, 26, of San Francisco, California, were charged last year after the two discovered a hole in AT&T’s website in 2010 that allowed anyone to obtain the e-mail address and ICC-ID of iPad users. The ICC-ID is a unique identifier that’s used to authenticate the SIM card in a customer’s iPad to AT&T’s network.

The iPad was released by Apple in April 2010. AT&T provided internet access for some iPad owners through its 3G wireless network, but customers had to provide AT&T with personal data when opening their accounts, including their e-mail address. AT&T linked the user’s e-mail address to the ICC-ID, and each time the user accessed the AT&T website, the site recognized the ICC-ID and displayed the user’s e-mail address.

Auernheimer and Spitler discovered that the site would leak e-mail addresses to anyone who provided it with a ICC-ID. So the two wrote a script – which they dubbed the “iPad 3G Account Slurper” — to mimic the behavior of numerous iPads contacting the web site in order to harvest the e-mail addresses of iPad users.

According to authorities, they obtained the ICC-ID and e-mail address for about 120,000 iPad users, including dozens of elite iPad early adopters such as New York Mayor Michael Bloomberg, then-White House Chief of Staff Rahm Emanuel, anchorwoman Diane Sawyer of ABC News, New York Times CEO Janet Robinson and Col. William Eldredge, commander of the 28th Operations Group at Ellsworth Air Force Base in South Dakota, as well as dozens of people at NASA, the Justice Department, the Defense Department, the Department of Homeland Security and other government offices.

The two contacted the Gawker website to report the hole, a practice often followed by security researchers to call public attention to security holes that affect the public, and provided the website with harvested data as proof of the vulnerability. Gawker reported at the time that the vulnerability was discovered by a group calling itself Goatse Security.

AT&T maintained that the two did not contact it directly about the vulnerability and learned about the problem only from a “business customer.”

Auernheimer later sent an e-mail to the U.S. attorney’s office in New Jersey, blaming AT&T for exposing customer data, authorities say.

“AT&T needs to be held accountable for their insecure infrastructure as a public utility and we must defend the rights of consumers, over the rights of shareholders,” he wrote, according to prosecutors. ”I advise you to discuss this matter with your family, your friends, victims of crimes you have prosecuted, and your teachers for they are the people who would have been harmed had AT&T been allowed to silently bury their negligent endangerment of United States infrastructure.”

But prosecutors say his interest went beyond concern about the security of customer data.

According to the criminal complaint, a confidential informant helped federal authorities make their case against the two defendants by providing them with 150 pages of chat logs from an IRC channel where, prosecutors said, Spitler and Auernheimer admitted conducting the breach to tarnish AT&T’s reputation and promote themselves and Goatse Security.

Spitler: I just harvested 197 email addresses of iPad 3G subscribers there should be many more … weev: did you see my new project?

Auernheimer: no

Spitler: I’m stepping through iPad SIM ICCIDs to harvest email addresses if you use someones ICCID on the ipad service site it gives you their address

Auernheimer: loooool thats hilarious HILARIOUS oh man now this is big media news … is it scriptable? arent there SIM that spoof iccid?

Spitler: I wrote a script to generate valid iccids and it loads the site and pulls an email

Auernheimer: this could be like, a future massive phishing operation serious like this is valuable data we have a list a potential complete list of AT&T iphone subscriber emails

…

Spitler: I hit fucking oil

Auernheimer: loooool nice

Spitler: If I can get a couple thousand out of this set where can we drop this for max lols?

Auernheimer: dunno i would collect as much data as possible the minute its dropped, itll be fixed BUT valleywag i have all the gawker media people on my facecrook friends after goin to a gawker party

At one point the two discussed the legal risks of what they were doing:

Spitler: sry dunno how legal this is or if they could sue for damages

Auernheimer: absolutely may be legal risk yeah, mostly civil you absolutely could get sued to fuck

At the same time, others on the IRC chat allegedly discussed the possibility of shorting AT&T’s stock.

Pynchon: hey, just an idea delay this outing for a couple days tommorrow short some at&t stock then out them on tuesday then fill your short and profit

Rucas: LOL

Auernheimer: well i will say this it would be against the law … for ME to short the att stock but if you want to do it go nuts

Spitler: I dont have any money to invest in ATT

…

Auernheimer: if you short ATT dont let me know about it

Spitler: IM TAKIN YOU ALL DOWN WITH ME SNITCH HIGH EVERYDAY

In the wake of news stories about the breach, they allegedly discussed their failure to report the vulnerability to a “full disclosure” mailing list, as well as the opportunity to push their Goetse Security business as a result of the breach:

Nstyr: you should’ve uploaded the list to full disclosure maybe you still can

Auernheimer: no no that is potentially criminal at this point we won

Nstyr: ah

Auernheimer: we dropepd the stock price

Auernheimer: lets not like do anything else we fucking win and i get to like spin us as a legitimate security organization

Spitler pleaded guilty to the charges last year.

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“Secret Disco Revolution” Gets U.S. Release

LOS ANGELES (TheWrap.com) – Screen Media Films has acquired U.S. theatrical rights to the documentary “Secret Disco Revolution,” featuring interviews with many 70′s music icons, including Gloria Gaynor, The Village People, and Kool and the Gang.

ScreenMedia plans a June 2013 U.S. theatrical run of the documentary, the company announced Monday.

Written, directed, and produced by Kastner, the film looks into the disco movement and many of its key figures.

“For anyone that grew up with disco this film will transport you back in time while filling in the blanks to what you didn’t even realize was happening around you,” said Suzanne Blech, president of Screen Media Films.

“If you weren’t around at the time to get caught up in the disco craze, the music and the moves will make you want to get up and dance,” Blech said.

Entertainment One Films International (eOne) has also sold the film to a number of other territories, including Japan (Kadokawa), Italy (Sky Arts) and Germany, Austria, Switzerland and France, all through ZDF Arte.

The Screen Media deal was negotiated by Blech and Charlotte Mickie from eOne, along with Andrew Herwitz from The Film Sales Company, on behalf of the filmmakers.

Music News Headlines – Yahoo! News

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Global Update: Meningitis Vaccine Gets Longer Window Without Refrigeration

In what may prove to be a major advance for Africa’s “meningitis belt,” regulatory authorities have decided that a new meningitis vaccine could be stored without refrigeration for up to four days.

The announcement was made last week at a conference in Atlanta of the American Society of Tropical Medicine and Hygiene. While a few days may seem trivial, the hardest part of protecting poor countries is often keeping a vaccine cold while moving it from electrified cities to villages with no power. In antipolio drives, for example, the freezers, generators and fuel needed to make ice for the shoulder bags of vaccinators can cost more than the vaccine.

The new vaccine, MenAfriVac, made in India for 50 cents a dose, was introduced in 2010. In bad years, epidemics during the hot harmattan winds have killed as many as 25,000 Africans and disabled 50,000 more. In Chad this year, vaccination drove down cases to near zero in districts where it was used, while others nearby had serious outbreaks.

Experts decided that the vaccine is safe for four days as long as it stays below 104 degrees.

While temperatures get higher than that in Africa, said Dr. Godwin Enwere, medical director for the Meningitis Vaccine Project, teams normally get the vaccine out of coolers at dawn, drive to villages and finish before the day heats up. Other experts said it should be kept in the shade and monitored with colored paper “dots” that darken after hours in the heat.

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DealBook: Latest Slip for H.P. Forces a New Write-Down

Hewlett-Packard‘s already troubled history with deal-making just got worse.

The technology giant said on Tuesday that it had taken an $8.8 billion accounting charge, in part related to accounting problems at Autonomy, the British software company it bought for $10 billion last year. The announcement comes just one quarter after another large write-down by H.P. in relation to Electronic Data Systems, which itself follows a string of deal-making missteps by the company.

“I’m speechless,” said Brian Marshall, an analyst at the ISI Group, which downgraded H.P. to “neutral” from “buy” following the news on Tuesday.

The charge contributed to a quarterly loss of $6.9 billion for H.P., compared with a $200 million profit in the quarter a year earlier. H.P. said it had discovered “serious accounting improprieties” and “outright misrepresentations” at Automony that took place prior to the acquisition.

The company’s shares fell more than 11 percent on Tuesday to around $11.74.

The latest setback comes as H.P. has struggled to revive its business. For years, H.P. has turned to deal-making to help it grow, buying of E.D.S., Palm and Compaq. Since 2001, the company has spent at least $67 billion on acquisitions, according to Robert W. Baird & Company. That’s more than H.P.’s current market capitalization of about $23.4 billion.

“If you think about the companies they’ve acquired over the last several years,” Mr. Marshall said, “it’s just unbelievable how much value has been destroyed.”

In August, H.P. said it would take an $8 billion charge related to E.D.S., which it acquired for $13.9 billion four years earlier. The business, which provides consulting services to enterprise clients, had been losing ground to rivals.

Last year, H.P. announced a $1.7 billion charge when it said it would close its webOS device business — just a year after picking up the handset maker Palm for $1.2 billion.

The deal-making engine, however, has recently slowed as its cash pile has dwindle. The company reported about $11.3 billion of cash in the recent quarter. While that an improvement over the quarter last year, it is lower than the $13 billion of cash in 2009.

The takeover of Autonomy was criticized as too expensive when it was announced in the summer of 2011. Léo Apotheker, the chief executive at the time, soon resigned. He was replaced by Meg Whitman, a former head of eBay.

Ms. Whitman said on Tuesday that the company was “starting to see progress in key areas.” The company said in a statement that it remained “100 percent committed” to Autonomy, despite being “extremely disappointed” by its findings.

Some analysts had been skeptical of Autonomy before Tuesday’s announcement. But the size of the write-down was largely unexpected. And the language H.P. used — “improprieties” and “misrepresentations” — came as a surprise.

“That’s not something I expected to hear,” said Jayson Noland, an analyst at Robert W. Baird & Company.

The ISI analyst, Mr. Marshall, described the company as being in “free fall.”

“There has been perhaps irreparable damage to the franchise,” Mr. Marshall said. “A lot of people in the tech industry are pretty sad about that.”

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