HP sues its ex-chief in new job

Advertisement
By Ashlee Vance, NYT News Service | Updated: 6 June 2012 15:54 IST
Highlights
  • Hewlett-Packard’s tumultuous breakup with its former chief executive Mark V. Hurd may soon warrant its own reality TV show. The latest installment arrived on Tuesday, as H.P. filed a lawsuit in the Superior Court of California in Santa Clara against Mr.
Hewlett-Packard's tumultuous breakup with its former chief executive Mark V. Hurd may soon warrant its own reality TV show.

The latest installment arrived on Tuesday, as H.P. filed a lawsuit in the Superior Court of California in Santa Clara against Mr. Hurd. The suit accused Mr. Hurd of violating his severance agreement to protect H.P.'s confidential information by taking a job as co-president of Oracle, an H.P. rival and partner.

H.P. filed its complaint less than a day after Mr. Hurd joined Oracle and gained a seat on the board.

"In his new positions, Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing H.P.'s trade secrets and confidential information to others," H.P. said in its lawsuit.

Representatives of Mr. Hurd declined to comment.

But Oracle had some well chosen words. "By filing this vindictive lawsuit against Oracle and Mark Hurd, the H.P. board is acting with utter disregard for that partnership, our joint customers, and their own shareholders and employees," Lawrence J. Ellison, Oracle's chief executive, said in a statement. "The H.P. board is making it virtually impossible for Oracle and H.P. to continue to cooperate and work together in the I.T. marketplace." Historically, H.P. and Oracle have been among the closest partners in Silicon Valley. H.P. sells billions of dollars a year of servers that run Oracle's database software.

Lawyers said that California law did not appear to favor H.P. in the case against Mr. Hurd.

He does not have a noncompete agreement with H.P., the company said, and in any event, California shies away from noncompete agreements. And so H.P. is left with pursuing trade secret disclosure claims against him.

"H.P. is taking the position that there is going to be the inevitable disclosure of secrets by virtue of the position that Mark Hurd has at Oracle," said Larry C. Drapkin, a partner at Mitchell Silberberg & Knupp, who handles trade secret cases.

"The difficulty here is that California has not embraced the so-called inevitable disclosure doctrine," he said, meaning that the state courts would be hesitant to rule on whether Mr. Hurd was likely to disclose trade secrets.

Mr. Drapkin said that H.P. might be using the lawsuit to send a signal to Mr. Hurd, saying it was watching him closely.

Mr. Hurd resigned from H.P. a month ago, after the company's board grew concerned about his relationship with Jodie Fisher, a marketing contractor who had worked at events with important customers.

Ms. Fisher, a 50-year-old former actress in racy films who also posed for Playboy when she was in college, accused Mr. Hurd of sexual harassment in a complaint sent to H.P. The company's investigation into the complaint revealed no evidence of sexual harassment but raised questions about Mr. Hurd's judgment, according to H.P.

Mr. Hurd authorized large payments to Ms. Fisher, who had limited marketing experience, and her name was omitted from expense report filings covering meals the two had together.

Relations among Mr. Hurd, H.P. and Oracle have declined rapidly. In the weeks after his resignation, Mr. Hurd and H.P. have engaged in a feud over the situation through proxies.

Mr. Ellison joined in the dispute early on, offering his support for Mr. Hurd and criticism of H.P.'s board last month in an e-mail message to The New York Times. Mr. Ellison chided H.P.'s board for making "the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago."

On Monday, Mr. Hurd joined Safra A. Catz as a co-president of Oracle, while Charles E. Phillips Jr. resigned as co-president and a member of Oracle's board.

Oracle recently acquired Sun Microsystems, a longtime rival to H.P. in the hardware market, setting the stage for a more complicated relationship. Mr. Hurd's hiring has just upped the ante, industry experts said.

"Clearly, Larry Ellison has his eyes on some of H.P.'s business now," said William W. George, a professor of management practices at the Harvard Business School. "This often happens in high-tech as companies look to expand their horizons." 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Vivo Y500 4G Global Launch Teased, Here's Where It Might Arrive First
  2. You Can Now Download Android 17 on These Devices
  3. Tim Cook Says Apple Can No Longer Absorb Soaring Memory Costs Alone
  4. Amazon Prime Day Sale Dates Announced, Drops Prime Membership Price
  5. Xiaomi 17T Review
  6. Oppo Reno 15A 5G Arrives With a 7,000mAh Battery at This Price
  7. JBL Live 780NC, Live 680NC Debut in India With Up to 80-Hour Battery Life
  8. Unreal Engine 6 Comes With Claude, Gemini Models to Speed Up Game Development
  9. Android 17 Will Let You Migrate iMessages, Passkeys and Even Alarms
  10. The OnePlus 15R Is Now Available in a New 16GB RAM Variant at This Price
  1. Amazon Prime Day 2026 Sale Dates Announced, Prime Membership Price Drops to Rs. 999
  2. Oppo Reno 15A 5G Launched With 7,000mAh Battery, 50-Megapixel Rear Camera: Price, Specifications
  3. Bitcoin Slips Below $64,000 as Hawkish US Fed Outlook Dampens Market Sentiment
  4. Epic Games Confirms Unreal Engine 6 Comes With Claude, Gemini Integration; Releases UE 5.8 Update
  5. OnePlus N6 Runs Geekbench With a MediaTek Dimensity 6 Series Chip, 6GB RAM
  6. JBL Live 780NC, JBL Live 680NC Launched in India With Up to 80-Hour Battery Life: Price, Features
  7. Samsung Health Update Starts Rolling Out With Vitals, Heart Health Score and More Improvements
  8. Nothing Founder Carl Pei Says He’s Coming for Apple’s Customers, One iPhone User at a Time
  9. Android 17 Offers Upgraded Android Switch Tool With Support for Transferring iMessages, Passkeys, Passwords and Alarms
  10. Google Home Speaker Finally Makes Its Global Debut, Available to Pre-Order in Select Markets: Price, Features
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.