HP's investigation of ex-CEO Mark Hurd will be kept secret

FLOGGER OF EXPENSIVE PRINTER INK HP has managed to keep an internal report on the departure of ex-CEO Mark Hurd secret.

Ernesto Espinoza, an HP stockholder who alleged corporate wrongdoing, was attempting to get a Delaware court to force the disclosure of HP's internal report by lawyers from Covington and Burling on events that led to Hurd's departure. Judge Jack Jacobs denied the request, saying, "Espinoza has not shown that the Covington report is essential to his stated purpose, which is to investigate possible corporate wrongdoing."

Hurd's departure following an investigation of his expense claims raised a few eyebrows and questions. The questions mounted up once it was revealed that Hurd received a severance agreement worth millions, only to end up as president of arch-rival Oracle.

Espinoza told the court that releasing Covington's reports would provide "a full opportunity to air out" the circumstances surrounding Hurd's departure from HP. Following Hurd's departure, HP's share price fell, which left shareholders doubly miffed after seeing the firm's ex-leader getting a huge pay-off while the value of their investments fell.

In the ruling, the judge confirmed the basis of Hurd's pay-off, stating, "The [HP] board did not terminate Hurd 'for cause,' ... Instead, the board approved a separation agreement under which Hurd received, among other benefits, severance payments estimated as worth over $30m."

Aside from Hurd's dodgy expense reports, there were claims that he had or had attempted to have an inappropriate relationship with a female contractor, which were resolved in an out of court settlement by Hurd. HP had previously said its investigations did not find that Hurd had violated the company's sexual harassment policy. µ