HP Announces Press Briefing on Board Leak Investigation
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HP (NYSE:HPQ) (Nasdaq:HPQ) today announced that Mark Hurd, HP chief executive officer and president, will lead a press conference on Friday, Sept. 22, at 1:05 p.m. PT, to discuss the actions HP is taking to address issues regarding the investigation of leaks from its boardroom.
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NEW YORK -- Investigators for Hewlett-Packard Co. sought private telephone records of board members while hunting for leaks to the media of confidential company information, the computer maker said in a regulatory filing Wednesday.
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Hewlett-Packard Co.'s board of directors yesterday called an emergency meeting for Sunday as a scandal involving spying on board members and journalists escalated and prompted Chairman Patricia C. Dunn to say she would step down if asked.
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Hewlett-Packard Co settled claims on Wednesday with four reporters at the heart of a scandal involving claims that the world's biggest PC maker engaged in corporate espionage to plug a boardroom leak.
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(InfoWorld) - In one of his first public acts to address the burgeoning Hewlett-Packard Co. (HP) spy scandal, Chief Executive Officer Mark Hurd plans to brief reporters Friday about the findings of an analysis conducted by the company's law firm. HP retained Morgan, Lewis & Bockius for the outside analysis of the company's actions in trying to find the source of a boardroom news leak. The scandal led toÂ the resignation of company Chairman Patricia Dunn, who will turn over that job to Hurd in January. Dunn and Hurd have said they knew about the operation, but insist they never approved of the possible illegal methods used by third-party investigators to obtain communications records of reporters and some HP employees and directors. "What began as an effort to prevent the leaks of confidential information from HP's board room ended up heading in directions that were never anticipated," Hurd said in a written statement. However, company e-mail records seem to indicate that both executives knew about the investigators' "pretexting" practices while they were going on, according toÂ recent stories in the Wall Street Journal and The New York Times. Pretexting involves pretending to be someone to obtain their telephone records. In Friday's meeting, a representative from the law firm will share its findings, describing "exactly what took place and when," Hurd said. Dunn has also saidÂ she will share more information about the episode, promising to "set the record straight" about allegations that she oversaw the illegal operation. Morgan Lewis will also represent the company in government inquiries such as criminal investigations by the California and Massachusetts attorneys general, and by the U.S. House of Representatives. California Attorney General Bill Lockyer has said that he has enough evidence to indict certain people at HP and its contractors with crimes related to their methods in obtaining private phone records of reporters, board members and other employees. Â
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SAN FRANCISCO -- Investigators for Hewlett-Packard Co. sought private telephone records of board members while trying to figure out which director leaked confidential company information to the media, the computer maker disclosed in a regulatory filing Wednesday.
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Hewlett-Packard Co. (HP) has submitted thousands of documents to a House subcommittee looking into how the company tracked down boardroom leaks.
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(InfoWorld) - Hewlett-Packard board members and journalists were under physical surveillance by investigators trying to find out who was providing information to reporters, and private investigators tried to put tracking software on a journalist's computer to keep tabs on e-mail, according to a New York Times report. Patricia Dunn, HP's chairman, the company's general counsel and a staff attorney oversaw the internalÂ investigation of news leaks, the Times reported, citing anonymous sources who have been briefed on HP's findings so far regarding the secret investigation. It isn't clear how much involvement in the investigation there was by Dunn and others at HP, the Times reported Monday. HP announced last week that Dunn willÂ step aside as chairmanÂ in January, although she will remain as a director. Two others also have resigned from the board in the wake of the scandal. Over the weekend, HP identified Michael Moeller, director of corporate media relations, as one of two HP employees who was targeted in the internal investigation. "Investigators' suspicions were misdirected and unfounded," Robert Sherbin, HP's vice president for external communications was quoted as telling the Times on Sunday. The internal investigation reportedly was conducted in two stages, with the first from January 2005 to August of that year, which came up with nothing to go on, and then a second phase beginning in January 2006 after the technology news site of CNET NetworksÂ posted an article about an HP senior management meeting held that month. The board first clamored for an investigation into leaks of information to journalists in January 2005 following an article in The Wall Street Journal that spoke of board discussions regarding management reorganization and changes in the responsibilities to be handled by Carly Fiorina, who was then chief executive officer and chairman. She was ousted by the board in February 2005. Within days of that board action, The New York Times published a detailed account of a directors' meeting that was crucial to her ouster. Reporters from the Times, the Journal, CNET and Business Week have been informed by the California attorney general's office that HP investigated them. California and federal authorities are investigating HP's conduct and the California attorney general has said that charges are likely. HP has admitted that its the private investigative firm it hired used "pretexting," with investigators pretending to be journalists in order to obtain their personal telephone records. Even after a summary of the internal investigation was presented to leaders at HP, in Palo Alto, California, those in charge were unaware that possibly illegal methods had been used to obtain information, the Times reported. In May, the investigation's findings were relayed to the board of directors, including the allegation that its longest-running member, George Keyworth, was the source of the leaks to journalists. He refused to resign, but Vice Chairman Thomas Perkins, an influential and important Silicon Valley venture capitalist, was incensed over the probe and quit the board. He then turned his attention to pressuring Dunn to resign. His surprising departure was announced in a mildly worded HP statement that offered no clue as to the fractious nature of what had transpired, details of which began to emerge in news accounts earlier this month.
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(InfoWorld) - Hewlett-Packard board of directors took no action at a special Sunday meeting and will reconvene late Monday to continueÂ discussions about the scandalÂ that has occupied the company over the past week. The board held a teleconference Sunday morning for several hours, according to a brief company statement issued Sunday afternoon, to discuss reports that outside investigators, acting on behalf of the board,Â obtained phone recordsÂ of directors and journalists to trace the source of information leaks regarding board meetings. The investigators' tactic of disguising their true identity in order to gain access to customer records, called "pretexting," may be in violation of the law and the California Attorney General's office is investigating the case. HP gave no reason in its statement for the move to adjourn Sunday's meeting to Monday. HP Board Chairman Patricia Dunn has been criticized for launching the investigation, including calls for her resignation. Dunn said she was "appalled" that the investigators engaged in pretexting but said that she was not told details of how they conducted their probe. While she has said that she won't resign on her own, she would step down if the board requested her to do so. The investigation determined that HP director George Keyworth was the source of a story CNet Networks Inc. story in January about HP's business strategy. When Keyworth was asked to resign from the board in May, he refused. But board member Thomas Perkins, a renowned Silicon Valley venture capitalist, resigned in protest over the way in which the investigation was conducted. Chief Executive Officer Mark Hurd, in a letter to company employees released late Friday, urged them to keep focused on their work. "The media coverage and speculation regarding the recent actions of the HP Board ... have nothing to do with the strategy or operations of Hewlett-Packard," he said. Hurd, who emphasized that he was speaking as CEO and not as a board member, added: "There has been a long history of leaking company information with the HP board that clearly needs to be resolved."
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The U.S. Securities and Exchange Commission wants to know more about the circumstances surrounding the resignation of Thomas Perkins from the Hewlett-Packard board earlier this year.
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By Purva Patel and Anastasia Ustinova, Houston Chronicle  Sep. 19--It was all about business at Hewlett-Packard's technology forum in Houston on Monday, despite the continuing fallout over a company-ordered investigation of board members to find the source of leaks to reporters.
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(InfoWorld) - Hewlett-Packard has turned over thousands of documents to a U.S. House subcommittee investigating methods the company used to find out who was leaking company information to the media, a subcommittee spokesman said Monday. "The committee did receive thousands of pages of documents from HP. Staff investigators are reviewing them now," said Terry Lane of the Subcommittee on Oversight and Investigations of the House Committee on Energy and Commerce. HP confirmed it responded to the subcommittee's request but didn't go beyond that. "We are complying with the House Subcommittee'sÂ request for informationÂ but are not releasing the details of what's being provided for the committee's inquiry," said HP spokesman Ryan Donovan. The inquiry springs from revelations that HP hired an outside investigative firm that used questionable tactics to find theÂ source of leaks from the HP boardÂ to news media in 2005 and 2006. HP, in a U.S. Securities and Exchange Commission filing Sept. 6, acknowledged that unnamed outside investigators used "pretexting," a form of subterfuge where investigators pose as someone else, to obtain personal phone records of people it was investigating. The committee is considering federal legislation to make pretexting illegal. The House panel, in a Sept. 11 letter to HP Board Chairman Patricia Dunn, asked HP to: Identify the outside investigative firms it hired; identify the people within HP who authorized, participated in or had knowledge of HP's investigation; provide copies of contracts between HP and any outside firms; disclose the identities of everyone whose phone records were procured, or were attempted to be procured; and provide other information. HP, of Palo Alto, California, has refused to identify the outside firms it hired, but various media reports have identified them as Security Outsourcing Services, of Needham, Massachusetts, and Action Research Group, of Melbourne, Florida. Although HP has claimed that its legal advisors told it that the pretexting was within the law, an HP security specialist reportedly questioned its legality earlier this year. Fred Adler, a computer-crimes specialist within HP's global security division, and a former U.S. Federal Bureau of Investigation agent, notified his supervisors that acquiring people's phone records under false pretenses could be against the law, The Wall Street Journal reported Tuesday. The subcommittee has invited Dunn and HP General Counsel Ann Baskins to testify at a committee hearing Sept. 28 and a committee source told the Journal they would appear. HP's Donovan would not comment. Larry Sonsini of the Palo Alto law firm Wilson, Sonsini, Goodrich & Rosati was also invited to testify but it's not known if he will appear. Ronald DeLia of Security Outsourcing Solutions, also invited, hasn't replied, but the Journal quoted a committee source as saying that if DeLia were to testify he said he would invoke his Fifth Amendment right to not testify to protect against self-incrimination.ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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Documents offer new details of HP's leak hunt, including info Patricia Dunn shared with private investigators.
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Investigation into media leaks from the boardroom
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Hewlett-Packard Co.  is  under investigation by U.S. federal prosecutors over its  inquiry into boardroom leaks to the press, authorities said on  Monday, adding to the computer maker's legal woes.
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(InfoWorld) - Hewlett-Packard Co. Chairwoman Patricia Dunn, a former company lawyer, and three outside investigators wereÂ charged Wednesday in CaliforniaÂ on felony charges related to the conduct of an investigationÂ to track down news leaks from the HP board that allegedly broke state law. California Attorney General Bill Lockyer's office said charges have also been filed against Kevin Hunsaker, a former senior lawyer at HP; Ronald L. DeLia, a Boston-area private detective; Matthew DePante, manager of Action Research Group, a Melbourne, Florida, information broker; and Bryan Wagner, a Littleton, Colorado, man who is said to have obtained private phone records while working for Action Research. TheÂ charges were announced at a press conference held Wednesday at the California Department of Justice. The charges include using false or fraudulent pretenses to obtain confidential information from a public utility, wrongful use of computer data, identity theft, and conspiracy to commit each of those crimes. All of the charges are felonies. "One of our state's most venerable corporate institutions lost its way as its board sought to find out who leaked confidential information to the press," said Lockyer in a statement, released Wednesday. "In this misguided effort, people inside and outside of HP violated privacy rights and broke state law." Lockyer's office has been investigating the spying allegations because HP is based in Palo Alto, California. The U.S. Attorney's Office in San Francisco and the Federal Bureau of Investigation have been conducting separate investigations of HP. In a statement released Wednesday in advance of the Sacramento press conference, HP said it was continuing to cooperate with state and federal investigators. The private investigators hired by HP allegedly used "pretexting," pretending to be someone they are not, to obtain the telephone records of HP directors, other employees and journalists who cover the company in an attempt to find out who from the board provided information to the reporters. The scandal has attracted the attention of the U.S. Congress.Â On Sept. 28,Â Dunn told the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee that she believed employees and lawyers who said that the HP's leak investigation complied with the company's standards of conduct. The subcommittee was holding hearings into the use of pretexting. The committee passed a federal ban on pretexting but the Congress adjourned before the full House or the Senate voted on the legislation. When questioned about the techniques used to track down the leaks arose in the latter part of the investigation, Dunn said, she passed concerns to company Chief Executive Officer Mark Hurd. Before then, the company's lawyers had assured her the techniques were being done "legally and properly," she said. "At no time in the investigation did I authorize its methods," Dunn said. "I asked this to be done in the HP standard way." On his part, Hurd told the subcommittee that he was not aware of the details of the techniques being used. He said he did not read a report from the investigating team that detailed the use of pretexting. Ann Baskins,Â who resigned right before the subcommittee hearing as HP's senior vice president and general counsel, and Hunsaker both asserted their rights not to testify under the Fifth Amendment of the U.S. Constitution during the hearing. Also taking the fifth before the subcommittee were Delia, Wagner and Action Research owner Joe DePante. Dunn faces these criminal charges at a difficult time in her personal life. Dunn, is scheduled to begin chemotherapy Friday for a recurrence of advanced ovarian cancer, according to a Wednesday report in the San Jose Mercury News. She was diagnosed with ovarian cancer in 2004 and had been treated for breast cancer and melanoma dating back to 2001, the paper reported. (Stephen Lawson and Robert McMillan contributed to this story) Â
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Hewlett-Packard Co.  on  Thursday admitted that private investigators hired by its board  had acquired the phone records of several journalists in an  attempt to find a suspected boardroom leaker, the Financial  Times reported on Friday.