HP sued over Hurd ousting

HP sued over Hurd ousting

Summary: The first lawsuit on behalf of a shareholder has been filed against HP in connection to the resignation of former chief executive Mark Hurd.

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The first lawsuit on behalf of a shareholder has been filed against HP in connection to the resignation of former chief executive Mark Hurd.

The Wall Street Journal first reported on Thursday that a Connecticut law firm is representing HP shareholder Brockton Contributory Retirement System in a complaint against HP's board of directors, Hurd and interim chief executive Cathie Lesjak. The suit accuses the board of breach of fiduciary duties in how it handled Hurd's resignation.

The board on Friday announced that it asked Hurd to resign as chief executive of one of the world's foremost technology companies after he was accused of sexual harassment by former HP marketing contractor Jodie Fisher. Although the HP board's own investigation cleared Hurd of any harassment, it did find that he had submitted inaccurate expense reports. Because of that, the board asked for Hurd's resignation, and Hurd agreed to a severance package worth approximately $28 million.

For more on this story, read HP board sued over Hurd ousting on CNET News.

Topics: Legal, CXO, Enterprise Software, Hewlett-Packard, IT Employment

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5 comments
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  • I don't disagree.

    If I were a shareholder, I'd sue as well. Why should Hurd or any other CEO who gets caught doing deliberate, malicious activities to hurt the company get a golden parachute? People losing their jobs by no means of their own (or those who deliberately engage in bad acts) don't get a severance package...
    HypnoToad72
    • See post below; suing in this case is for nothing but greed

      @HypnoToad72<br>You think HP like giving money away? You think they love rewarding bad behavior??? Ha! Read the link and think again.<br> <br><a href="http://www.zdnet.com/tb/1-86808-1644534" target="_blank" rel="nofollow">http://www.zdnet.com/tb/1-86808-1644534</a>
      Cayble
  • RE: HP sued over Hurd ousting

    @HypnoToad72
    I totaly agree! If you can not account for all of the money on your expense reports that is the same as stealing.
    mcfant
  • Ha. Mark "the Turd" Hurd has to be laughing his @$$ off!

    First he gets $28 million, with NO NON-COMPETE, and now HP has to defend itself over it. Bill & Dave have to be doing lateral 360s in their graves.
    matthew_maurice
  • All money now accounted for.

    Geeze, figure it out guys! Ha! I'm shocked nobody is getting this!

    1. Hurd made the company millions and multi millions of dollars, essentially made the company what it is today.

    2. If he doesn't leave with a golden parachute he sues the company, costing multi millions in legal fees and airing every tiny bit of the companies dirty laundry, a real messy business with absolute zero upside for the company or shareholders. Golden parachute is the most cost effective way out for the company and shareholders. And see #1.

    3. The cheezball shareholder hopes to rape HP for cash for Hurds indiscretions, although HP the company has already taken the best route in the best interests of the company and shareholders in general.

    Although what Hurd did was dumb and to some degree counter productive to HP, there is no argument whatsoever that when Hurds reign is entirely taken into account; even if every soul involved in HP knew every detail of how his tenure would play out over the years the best choice by far would still to have brought him in, then kick him out with the golden parachute when this event happens, and thats just what they did.

    Its like saying, what would you do in this circumstance...you take in a boarder, he pays you $1200 a month for the room he rents which is double what its worth. After 3 years you find he has stole $300 out of your wallet. You kick him out half way through the month and return his entire months rent. He essentially gets the $300 he stole and $600 back for the half month he stayed. Yet you got $21600 more then the rented room was worth. All things considered, you would be nuts to do things any different then what you did even if you knew how it would turn out in the end.

    The share holder is a complete jagoff and is simply trying to rape HP because he knows that he might profit by it. The massive profit Hurd brought to HP and the quick cheap and easy way HP dumped him means nothing to this greedy shareholder.
    Cayble