SEC to Investigate Hurd HP Departure

By Richard Gibson
Dec 21 2010

The Securities and Exchange Commission announced today that they would be investigating the events leading up to US computer maker HP’s forcing Mark Hurd out after sexual harassment allegations were made.

The actual investigation does not revolve around the sexual harassment allegations but has more to do with the leaked information concerning the purchase of EDS, a small software firm that was absorbed by HP in 2008.

The investigators believe that Hurd may have leaked the information that HP would be purchasing the company to the female contract employee that accused Hurd of sexual harassment.

If the investigation proves that Hurd leaked the information then he may face federal insider trading charges. However, the female employee could also be charged as the financial gains that she made from EDS stock is what triggered the investigation.

HP and their board of directors announced soon after Hurd left the company that they found no instance of sexual harassment once their investigation was completed. However, they did find that Hurd was guilty of several ethical lapses while falsifying expense account reports to cover payments made to the contract employee.

It was discovered that Hurd had been paying the woman for work during small events and the income that she was receiving was well beyond standard pay. The woman has said that she is continuing her sexual harassment suit against Hurd, despite admitting that the two never had any kind of sexual contact during their time together at HP.