Menu
SEC broadens HP probe

SEC broadens HP probe

Hewlett-Packard has entered into mutual agreements with two former directors caught up in the board spying scandal not to file lawsuits over the dispute.

The company disclosed the agreement in a filing to the U.S. Securities and Exchange Commission on Thursday. In the same filing, HP said it has agreed to pay some of the directors' legal expenses in connection with the investigations.

The SEC has asked for more information on the circumstances surrounding Thomas Perkins' resignation from HP's board of directors over the spying scandal, HP said in the filing.

HP also revealed the terms under which Perkins and director George Keyworth left the board. They resigned after it was revealed that private investigators hired by HP may have used illegal methods to identify Keyworth as the source of leaks of board deliberations to the news media.

Separately on Thursday, HP said chief executive officer Mark Hurd "has offered to appear" before a House subcommittee probing the scandal. Other HP executives, Chairman Patricia Dunn and others implicated in the scandal have accepted invitations to appear at a Sept. 28 hearing.

HP said in the SEC filing that it has entered into a "Mutual Release and Indemnification Agreement" with Perkins and Keyworth in which the two former directors agreed not to file claims against other directors, officers or employees of HP. In turn, the company agreed not file claims against them. HP will also pay legal fees Perkins and Keyworth may incur in cooperating with government investigations of the scandal. Besides the House inquiry, the California Attorney General and the U.S. Attorney for Northern California are conducting probes.

The SEC filing also said Perkins and Keyworth reserve the right to take legal action against private investigation companies that HP allegedly hired to probe the source of board leaks. HP told the SEC on Sept. 6 that it had discovered those outside firms engaged in a possibly illegal practice called "pretexting" while digging into the personal phone records of directors, HP employees and journalists. The investigators' probe identified Keyworth as the confidential source. He initially refused to resign when confronted by the board in May, but he quit on Sept. 12.

HP also said in the filing that it is cooperating with an SEC request for additional information about the circumstances of Perkins' resignation in May. HP's SEC filing at that time noted Perkins' resignation without elaborating. Perkins, who said he resigned in protest of the way HP was conducting its investigation, later lobbied the company to amend its notice with more detail.

Hurd is set to lead a news conference Friday at HP headquarters in Palo Alto, California, to reveal the results of a separate investigation of HP's leak probe. After the scandal broke and reports surfaced about how involved HP executives may have been in overseeing the private investigators' activities, HP brought in the law firm of Morgan, Lewis & Bockius LLP to investigate. A representative of the firm will present its findings at the news conference.

News reports in recent days have revealed Hurd, Dunn and other HP executives were more involved in the leak probe than they had earlier indicated.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Hewlett-Packard

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments