This sucks, so I wrote a little script that works around the issue. It's a 
little program that runs as root, checks to see if the lid is closed every two 
seconds and calls pm-suspend. There's probably a better way, this just worked 
for me:
https://github.com/deliciousrobots/ubuntu-hp-folio-13

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https://bugs.launchpad.net/bugs/1010926

Title:
  Lid close event is never fired => no suspend on lid close

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