An investor has sued the Hewlett-Packard board, saying it allegedly robbed the company’s shareholders by paying ex-CEO Mark Hurd a $40 million severance package.
Filed by Louis Levine, the complaint names HP board members including Marc Andreessen, John Joyce and Joel Hyatt, along with even Hurd, as defendants in the case.
As reported by Information Week, the complaint contains allegations that the severance package was a waste of money, and that Hurd’s actions in producing fake expense reports should negate his payment.
“In announcing his resignation, Hurd acknowledged that ‘there were instances in which I did not live up to the standards and principles of trust, respect, and integrity that I have espoused at HP’,” Levine states.
“No reasonable person could conclude that the Board’s decision to approve these payments represented a fair or reasonable exchange.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
