Have You Hurd? Shareholders Sue H-P Directors Over CEO Flap
13th August 2010
A Connecticut-based law firm, Scott + Scott, filed a shareholder derivative suit in Santa Clara County Superior Court in California on Tuesday against H-P’s board, alleging directors violated their fiduciary duties in connection with the events surrounding the resignation on Friday of Hurd.
Among other things, the 45-page suit alleges that H-P’s board violated its corporate-governance guidelines by failing to inform shareholders of the investigation. It also attacks details of Mr. Hurd’s exit package, which is estimated at above $35 million.
All this is rather odd. Considering how dramatically he turned the company around, I should think it more appropriate for shareholders to sue the Board for firing him, since the actual transgressions determined were pretty trivial. But that’s me.