http://www.smdailyjournal.com/article_preview.php?id=75417
HP settles SEC claim in spy scandal
The Associated Press
SAN FRANCISCO — Hewlett-Packard Co. has settled
federal securities charges alleging the company
illegally concealed the reason a director
resigned just before its boardroom spying scandal erupted.
The Securities and Exchange Commission and the
Palo Alto-based technology giant separately announced the settlement Wednesday.
The SEC found that HP violated mandatory
disclosure rules in the way it announced venture
capitalist Tom PerkinsÂ’ May 2006 resignation from the board.
The agency filed settled administrative charges
Wednesday. The settlement does not include a fine
or admission of guilt by HP, only an agreement by
the company not to violate the SECÂ’s reporting requirements in the future.
“HP acted in what it believed to be a proper
manner,” Michael Holston, HP’s executive vice
president and general counsel, said in a
statement. “However, we understand and accept the
SEC’s views and are pleased to put this investigation behind us.”
Perkins quit in protest of the spying tactics
used to ferret out the source of boardroom leaks
to the media. HP disclosed the resignation in a
regulatory filing but did not mention the reason Perkins quit.
The SEC found the departure stemmed from a
dispute over the companyÂ’s corporate governance
and handling of sensitive information, thus
requiring HP to include a reason in its regulatory filing on the matter.
“The company viewed this as a personal dispute
between a director and the chairman and opted to
stay silent about the disagreement,” said Marc
Fagel, associate regional director of the SECÂ’s
San Francisco office. “But the failure to make
the required disclosures deprived investors of
important information about the management of the
company by its board of directors.”
After he left, Perkins mounted an aggressive
campaign to force HP to reveal the reason he
quit. HP did just that in September, also
admitting that detectives employed a shady
surveillance tactic known as “pretexting” to
unearth the confidential phone records of board
members, journalists, HP employees and their family members.
The revelation touched off a firestorm over HPÂ’s
corporate governance procedures and led to
criminal charges against former Chairwoman
Patricia Dunn that were eventually dropped, a
$14.5 million settlement between HP and the state
of California, congressional hearings, and the
conviction of a private detective on federal
identity theft and conspiracy charges.
The federal criminal probe is ongoing.
HP has been largely unfazed by the scandal. The
companyÂ’s operations are going gangbusters under
Chief Executive Mark Hurd, and its stock price
has jumped more than 25 percent since the tactics
were disclosed in September, creating an
additional $20 billion in shareholder wealth.
HPÂ’s stock rose 5 cents to $45.63 on Wednesday.
In further evidence of its technological
strength, HP also said Wednesday it has landed a
seven-year contract from NASA worth up to $5.6
billion to provide desktops, workstations and
other products to federal government agencies.
----------------------------------------------------------------------------------------------------
World Class, Professional, Ethical, and Competent Bug Sweeps, and
Wiretap Detection using Sophisticated Laboratory Grade Test Equipment.
----------------------------------------------------------------------------------------------------
James M. Atkinson Phone: (978) 546-3803
Granite Island Group Fax: (978) 546-9467
127 Eastern Avenue #291 Web:
http://www.tscm.com/
Gloucester, MA 01931-8008 E-mail: mailto:jm..._at_tscm.com
----------------------------------------------------------------------------------------------------
We perform bug sweeps like it's a full contact sport, we take no prisoners,
and we give no quarter. Our goal is to simply, and completely stop the spy.
----------------------------------------------------------------------------------------------------
Received on Sat Mar 02 2024 - 00:57:28 CST