Hewlett-Packard (NYSE:HPQ) Sued Over Hurd's Severance Package

An activist investor has sued Hewlett-Packard (NYSE:HPQ) over the severance package paid to former CEO Mark Hurd.

Canaccord said, "The world’s largest computer maker has been sued by an activist shareholder, angered by the departure of former CEO Mark Hurd. In a suit filed with the district court of Delaware, the investor alleges that officials of H-P violated their duties in handling Hurd's ousting, claiming they created “corporate waste” in granting him a pretty severance package. As part of his departure agreement, Hurd was due to receive payment of $12.2 million, plus other benefits that include a pro-rated vesting and settlement of 330,177 restricted H-P shares, company filings show. The investor is seeking further information about this agreement, as well as “monetary relief” on behalf of the company. Hurd resigned as H-P’s Chairman and CEO back in August, after a sexual harassment claim was filed by former adult-entertainment actress Jodie Fisher. Although H-P said it didn’t find that Hurd had violated its harassment policy, he elected to step down, likely on recommendation of his fellow officers. Hurd now works for software maker Oracle (Nasdaq: ORCL) as a Co-President."

Hewlett-Packard closed Tuesday at $41.93, dropping $0.67, or 1.57 percent. Trading volume was about level with the 3-month daily average.