HP settles with Calif. AG over board-leak probe
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Hewlett-Packard Co. said on Thursday it would pay California $14.5 million to settle a civil case related to board-leak investigations that led to the resignation of Chairman Patricia Dunn.
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A lawyer for a New York Times reporter and three BusinessWeek reporters who were spied on as part of Hewlett-Packard Co.'s boardroom surveillance scheme says the four have settled claims against the company.
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Hewlett-Packard Co. HPQ.N 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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Hewlett-Packard has settled a U.S. Securities and Exchange Commission investigation regardingÂ the resignation of Tom Perkins from its board.
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The California attorney general expects to file charges against people at Hewlett-Packard Co and other companies in relation to the 'pretexting' scandal at HP, in which HP paid investigators who hacked the phone records of its directors and several journalists.
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State says it has made a deal with PC maker over civil charges related to methods used in an HP leak investigation.
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HP to pay 14.5 million dollars to settle charges in pretexting scandal    WASHINGTON, Dec. 8 (Xinhua) -- Computer giant Hewlett-Packard Co. has agreed to pay 14.5 million dollars to settle civil charges stemming from a board-leak probe, The Wall Street Journal reported on Friday.
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The agreement settles a California civil suit over its pursuit of private phone records to trace a news leak.
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By Connie Guglielmo and Karen Gullo  The scandal over Hewlett-Packard Co.'s secret probe to catch directors leaking information to the media deepened Thursday, with the California attorney general threatening to bring criminal charges.
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IN a bid to put an embarrassing leaks probe behind it, Hewlett- Packard has agreed to pay California $14.5 million (Pounds 7.4 million) to settle a civil case brought by Attorney General Bill Lockyer.
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(InfoWorld) - Former Hewlett-Packard Co. chairwoman Patricia Dunn made a brief court appearance Thursday in Santa Clara County, California, to face four state felony charges in the HP boardroom scandal. Superior Court Judge Alfonso Fernandez scheduled her arraignment for Nov. 17, at which she will enter a plea to charges in the case. Also making an initial court appearance earlier in the day was Kevin Hunsaker, HP's former ethics counsel, who surrendered, was booked and was scheduled for an arraignment December 6, according to the office of California Attorney General Bill Lockyer. Three private investigators hired by HP to investigate suspected leaks to news media by HP directorsÂ were also charged Wednesday, but since they are from out-of-state, their court appearances will likely occur sometime next week, Lockyer's office said. Each of the five defendants face charges of fraudulent wire communications, wrongful use of computer data, identity theft and conspiracy. The state alleges that Dunn and Hunsaker authorized an investigation of leaks and hired the private investigators. The investigators allegedly obtained, under false pretenses, the phone records of individuals targeted in their investigation, including HP directors, some employees and journalists who cover the technology company.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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Hewlett-Packard Co dodged a prolonged PR nightmare by announcing yesterday it would pay just $14.5m to settle a civil case with California over allegations of unlawful spying on reporters and its directors during an internal probe of boardroom leaks to the media.
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California's Attorney General announced a $14.5 million civil settlement with Hewlett-Packard Co. this afternoon, three months after the Silicon Valley computer giant was engulfed in an ethics and spying scandal that led to criminal charges against former top executives.
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As expected, Hewlett-Packard and the California state attorney general's office have reached a settlement in a civil suit pertaining to the company's methods in investigating its own board members. The company will pay the state $14.5 million, and in exchange, the state has agreed to an injunction against it pursuing any further civil matters against its employees, executives, directors, or the company itself.
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(InfoWorld) - An attorney hired by Hewlett-Packard to investigate the conduct of HP and outside investigators has provided new details of his firm's investigation ofÂ news leaks from the HP board. Mike Holston, a partner in Morgan, Lewis & Bockius was hired Sept. 8 to conduct an independent investigation of the scandal and reports directly to HP Chief Executive Officer and President Mark Hurd. Morgan Lewis has reviewed some of the approximately 1 million pages of documents it received from HP and outside investigators hired by HP to trace the news leaks. It determined that HP Board Chairman Patricia Dunn authorized two separate investigations: one to probe leaks in 2005 and a second in 2006. The Morgan Lewis probe found that HP hired in 2005 Security Outsourcing Services (SOS), of Needham, Massachusetts, a private security firm, to probe the first series of leaks. This is the first official confirmation that HP hired that firm, even though it had been identified in several recent news stories. Two months into SOS's probe, HP's Global Security division also joined the investigation. The investigation concluded in July 2005 without being able to identify the source of those leaks. When CNet NetworksÂ reported Jan 23, 2006, on the details of a private board meeting, HP launched a second investigation with the help of SOS and HP Global Security. Dunn, Hurd, HP's General Counsel Ann Baskins, and Jim Fairbaugh, chief of Global Security, approved the second investigation. Dunn and Baskins were kept up to date on the course of the investigation over the next three months, Holston said. "It is now clear that the investigation included tactics that ranged from the review of HPâs internal e-mails and instant messages, to the physical surveillance of an HP Board member and at least one journalist, to the "pretexting" of telephone call information of board members, HP employees, and journalists," he said, adding that SOS's legal counsel informed HP that SOS's investigative techniques were legal. The investigators presented a draft report to HP in March 2006 identifying the source of the board leaks and detailing some of their investigative methods, including pretexting, which is obtaining access to private phone records under false pretenses. HP sent a copy of the report to its outside legal counsel and the report was disclosed at a May 18 board meeting. In a separate HP filing Sept. 6 with the U.S. Securities and Exchange Commission, the company disclosed that director George Keyworth was the source. While he acknowledged his role, Keyworth refused to resign at that May board meeting. HeÂ eventually resignedÂ Sept. 12. Holston went on to say that Tony Gentilucci, another member of HP's Global Security division and a member of the investigative team, turned over the Social Security number of an HP employee to SOS. SOS then turned that and other Social Security numbers over to Action Research Group, another private investigative firm, which used the numbers to help gain unauthorized access to private phone records. This is also the first acknowledgement that Action Research, of Melbourne, Florida, was involved, although it had been identified in news reports. Disclosing personal employee information is a violation of HP policy, and could result in Mr. Gentilucci's dismissal, said a source inside the company who declined to be identified. Holston also disclosed that investigators attempted to send an e-mail to a CNet reporter from a fictitious disgruntled HP employee that contained a hidden attachment, called a "tracer," that would track who the reporter contacted about the tip so as to identify her sources. HP did not disclose the identity of the reporter Friday, but she was identified in a Sept. 21 Washington Post article as Dawn Kawamoto. But Holston said it could not be determined whether the tracer was ever activated. Hurd acknowledged in his remarks that heÂ approved the fake e-mail schemeÂ but said he did not know it involved use of the tracer. And although another scheme to send spies into the San Francisco offices of CNet and The Wall Street Journal posing as clerical or janitorial workers was considered, there was no indication it was ever carried out, Holston said.
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Hewlett-Packard Co.   recently "stonewalled" California's probe into the company, but  now has expressed willingness to cooperate, a spokesman for the  state's attorney general said on Thursday.
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SACRAMENTO, Calif  - California's attorney general on Wednesday sought felony indictments against former Hewlett-Packard Co. Chairman Patricia Dunn and four others in a leak scandal that involved spying on board members and journalists.