In a story that never seems to die, Hewlett-Packard has once again opened the Hurd can of worms. HP is working with outside lawyers to plan an “independent” investigation into the circumstances leading up to the resignation of former CEO and President Mark Hurd.
Court documents reveal that HP is looking back into the issue after shareholders filed a lawsuit in San Jose, Calif., federal court. The suit alleges that HP directors threw money down the corporate drain by agreeing to pay Hurd as much as $53 million in severance after he resigned last August.
Hurd resigned suddenly in the wake of an investigation into his relationship with a former actress named Jodie Fisher, who accused Hurd of sexual harassment. A company investigation cleared Hurd of any wrongdoing with Fisher, but Hurd resigned, saying there were instances in which he “did not live up to the standards and principles of trust, respect and integrity” that he espoused at HP. Hurd is now a president at Oracle.
Shareholder Complaints
“Admitting that he violated company policy and recognizing that he misused company assets, conduct that was not in the best interest of and injurious to HP, the board appeared to have more than sufficient basis to terminate Hurd for cause under the severance plan,” wrote lawyers for investor Ernesto Espinoza in a complaint obtained by Bloomberg.
HP couldn’t immediately be reached for comment. But this isn’t the first time the case has been reopened. The Securities and Exchange Commission probed Hurd’s dismissal late last year.
The Wall Street Journal cited anonymous sources as saying the SEC was investigating claims that Hurd shared insider information with an ex-contractor before the company acquired Electronic Data Systems for $13.9 billion in 2008. There has been no public outcome of the SEC investigation.
Fire Behind the Smoke?
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