Hewlett-Packard Sues Former CEO Mark Hurd Over Oracle Job
Hewlett-Packard's lawsuit aims to block Mark Hurd, its former CEO, from taking a job as an Oracle president, citing the risk of losing customers, trade secrets, and the company's competitive edge. The appointment would allegedly force Hurd to use or disclose HP's confidential information, making it "impossible" for him to perform his duties for Oracle without compromising HP's trade secrets and confidential information. Oracle's CEO, Larry Ellison, called HP's lawsuit "vindictive" and claimed it would hinder the two companies' ability to work together in the information technology market.
Key Takeaways:
- Hewlett-Packard sued Mark Hurd, its former CEO, to block him from joining Oracle as a president, citing the risk of losing customers, trade secrets, and competitive advantage.
- The company claims Hurd's new role would force him to use or disclose HP's confidential information, making it "impossible" for him to perform his duties for Oracle.
- Oracle CEO Larry Ellison responded, calling HP's lawsuit "vindictive" and stating it would hinder cooperation between the two companies.
- Mark Hurd was due to receive a payment of $12.2 million in severance, plus other benefits, including restricted HP shares, as part of his agreement.
- Hurd signed agreements with HP in 2008, 2009, and 2010 to prevent the disclosure of confidential company information and from soliciting HP customers, employees, or suppliers.
- Oracle announced Hurd's hiring 31 days after he left HP, and he is due to join the company's board.
Statistics:
- HP's stock fell 42 cents to $39.92 on the New York Stock Exchange following the lawsuit.
- Oracle's stock rose $1.35 to $24.27 on the Nasdaq Stock Market after announcing Hurd's hiring.
- Hewlett-Packard had previously paid $525,000 to Lexmark International over the hiring of former Lexmark vice president Bruce Dahlgren to oversee printer sales.
Sources:
- Bloomberg News
- The Waterloo Region Record (2010)
- The Associated Press, file