The US Securities and Exchange Commission (SEC) has begun an inquiry into Mark Hurd’s departure as CEO from Hewlett-Packard (HP), two people familiar with the matter said.
The people declined to be identified because the inquiry hasn’t been made public. The securities regulator is looking into whether Hurd leaked information about HP’s planned acquisition of Electronic Data Systems Corp (EDS) to a contractor, the Wall Street Journal reported yesterday.
Hurd, 53, left HP on August 6 after an investigation found that he violated standards of business conduct by concealing a personal relationship with a contract event coordinator, Jodie Fisher. He leaked information about the proposed acquisition of EDS, the newspaper reported in November, citing the letter from Fisher accusing Hurd of harassment.
The investigation into the harassment of allegation found inaccurate expense reports filed by Hurd or in his name, HP said in August. The company also determined that he didn’t violate its harassment policy.
As part of the SEC probe, regulators are also examining Hurd’s handling of expense reports and whether he destroyed evidence related to his departure, the Wall Street Journal reported yesterday.
The company is cooperating with an SEC investigation, said Mylene Mangalindan, a spokeswoman for Palo Alto, California-based HP. She declined to discuss what the SEC is investigating.
HP shares dropped as much as 1 per cent in German trading to the equivalent of $41.80 and were down 0.6 per cent as of 9.26 am It had declined 19 per cent this year.
Shares of HP dropped 18 per cent after Hurd’s resignation through August 27, as investors fretted that his successor might struggle to replicate the growth he spurred.
