HP Shareholder Sues Board Over Hurd Investigation

Last weekend, HP announced the "resignation" of Chairman, CEO, and Preside...
HP Shareholder Sues Board Over Hurd Investigation
Written by Chris Crum
  • Last weekend, HP announced the "resignation" of Chairman, CEO, and President Mark Hurd, following an investigation into sexual harassment claims that were later revealed to come from actress and former HP contractor Jodie Fisher.

    Well, HP’s board may have forgotten to clue in shareholders about that investigation, and now the board is being sued over it. The suit, filed by a Connecticut-based law firm, according to the Wall Street Journal, was actually filed on Tuesday on behalf of HP shareholder Brocton Contributory Retirement System.

    The complaint alleges that the board failed to live it to its fiduciary duties related to the investigation. CNET’s Erica Ogg quotes the complaint, "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."

    Lesjak would be HP’s CFO, which has assumed the CEO role on an interim basis as the board looks for Hurd’s replacement.

    Mark Hurd Resigns as HP CEO Hurd did indicate that the company will be fine without him, if that counts for anything. "The corporation is exceptionally well positioned strategically," he said upon resignation. "HP has an extremely talented executive team supported by a dedicated and customer focused work force. I expect that the company will continue to be successful in the future."

    HP has not offered a statement on the lawsuit.

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