HP Reaches Resolution with California Attorney General of Claims Arising from Board Leak Investigation

HP Reaches Resolution with California Attorney General of Claims Arising from Board Leak Investigation

HP today announced that it has entered into an agreement with the California Attorney General to resolve civil claims arising from the previously disclosed investigation into leaks from its board of directors. The agreement, filed today in Santa Clara County Superior Court, calls for HP to pay $14.5 million and to implement a series of measures designed to ensure that its internal investigations are conducted in accordance with California law and with the company’s high ethical standards.

“We are pleased to settle this matter with the Attorney General and are committed to ensuring that HP regains its standing as a global leader in corporate ethics and responsibility,” said Mark Hurd, HP chairman and chief executive officer. There was no finding of liability against HP as part of the settlement, which includes an injunction and agreement that the California Attorney General will not pursue civil claims against HP or against its current and former directors, officers and employees.

Under the agreement, $13.5 million of HP’s payment will be used to create a Privacy and Piracy Fund to assist California state prosecutors in investigating and prosecuting consumer privacy and information piracy violations. In addition, $650,000 will be used to pay statutory damages and $350,000 will reimburse the Attorney General’s office for the costs of its investigation.

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