Feeds

Shareholders sue HP over Hurd's sex scandal probe

'Give us back our money'

The essential guide to IT transformation

HP faces a lawsuit over the departure of Mark Hurd from shareholders angry at the massive payoff he received and accusing the board of failing in their legal duties.

Hurd was allowed to resign as CEO last week after an investigation into sexual harrassment allegations uncovered false expenses claims. He walked away with a $12.2m cash payoff and and improved stock options.

HP's CFO Kathy Lesjak has temporarily taken over as CEO while the firm seeks a replacement.

The lawsuit, filed for shareholders by a Connecticut-based law firm against both HP and Hurd, alleges that "as a result of Hurd's, Lesjak's, and the HP board's shortcomings, HP lost significant credibility, and the market punished HP (and its shareholders) upon the 8/6/10 revelation of Hurd's termination - slashing its stock rating and erasing over $9 billion in market capitalization when the company's stock resumed trading on 8/9/10".

The board, mostly appointed by Hurd, is accused of gross mismanagement, waste of corporate assets, violating the California corporation code, misappropriating information, and unjust enrichment.

The plaintiff, the Brockton Contributory Retirement System, also aims to reclaim Hurd's severance package for HP, and to enforce governance changes on the board. The complaint says HP violated corporate law by failing to inform shareholders of the investigation into Hurd, who was also its chairman.

HP has declined to comment on the lawsuit. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?