27,652
edits
Changes
→The Boardroom Spy Scandal
==Controversies==
==Controversies==
===The Boardroom Spy Scandal===
===The Boardroom Spy Scandal===
In 2006, former HP Chairperson Patricia Dunn and some officials of the company initiated an internal investigation to find out who leaked the details of the board of directors meeting regarding HP's long term strategic plan, which was published by CNET News.com. The private investigation firm hired by the company used pre-texting, a practice which used by the investigators by impersonating a person of interest to be able to access his or her sensitive information such as telephone records.<ref>
In 2006, former HP Chairperson Patricia Dunn and some officials of the company initiated an internal investigation to find out who leaked the details of the board of directors meeting regarding HP's long term strategic plan, which was published by CNET News.com. The private investigation firm hired by the company used pre-texting, a practice used by investigators to impersonate a person of interest to be able to access his or her sensitive information such as telephone records.<ref>
[http://www.zdnet.com/news/faq-the-hp-pretexting-scandal/149452 FAQ: The HP 'pretexting' scandal]</ref> The issue became controversial when HP Board of Director Tom Perkins resigned from the company because of the mishandling of the internal investigation. In his resignation letter, he emphasized that he is resigning to "protest the questionable ethics and the dubious legality of the chairman's methods" to find out the source of the leak of information. Perkins disclosed his resignation to the public when HP's Chief Legal Counsel ignored his communications regarding his request to amend the company's Securities and Exchange Commission (SEC) filing and include the full details of the reasons why he resigned from the company. He also pointed out that the HP's form-8K filed with the SEC on May 22, 2006 was defected and requested the company to file his letter including its attachments with the SEC as mandated by Item 5.02(a)(3)(iii).<ref>[http://i.n.com.com/pdf/ne/2006/perkins_letter.pdf?tag=mantle_skin;content Tom Perkins Letter to the HP Board]</ref>
[http://www.zdnet.com/news/faq-the-hp-pretexting-scandal/149452 FAQ: The HP 'pretexting' scandal]</ref> The issue became controversial when HP Board of Director Tom Perkins resigned from the company because of the mishandling of the internal investigation. In his resignation letter, he emphasized that he was resigning to "protest the questionable ethics and the dubious legality of the chairman's methods" to find out the source of the leak of information. Perkins disclosed his resignation to the public when HP's Chief Legal Counsel ignored his communications regarding his request to amend the company's Securities and Exchange Commission (SEC) filing and include the full details of the reasons why he resigned from the company. He also pointed out that the HP's form-8K filed with the SEC on May 22, 2006 was defective and requested the company to file his letter including its attachments with the SEC as mandated by Item 5.02(a)(3)(iii).<ref>[http://i.n.com.com/pdf/ne/2006/perkins_letter.pdf?tag=mantle_skin;content Tom Perkins Letter to the HP Board]</ref>
HP Board of Director George Keyworth II, who was the source of the leak resigned while Chairman Patricia Dunn stepped down from her position but remained as member of the Board. <ref>[http://www.businessweek.com/technology/content/sep2006/tc20060912_684141.htm Charges on the Way at Hewlett-Packard?]</ref> California Attorney General Bill Lockyer filed criminal charges against former Chairman Patricia Dunn, Kevin Hunsaker, former HP chief legal counsel, Ronald DeLia, private detective, Joseph DePante, owner of Action Research Group and Brian Wagner, employee of the Action Research Group. The felony charges include fraudulent wire communications, wrongful use of computer data, identity theft and conspiracy to commit the crimes.<ref>[http://i.i.com.com/cnwk.1d/pdf/ne/2006/06-087_0a.pdf?tag=mncol;txt Superior Court of California, County of Santa Clara Felony Complaint]</ref> Dunn pleaded not guilty on the charges filed against her.<ref>[http://news.cnet.com/Former-HP-chairman-pleads-not-guilty-to-felonies/2100-1014_3-6135879.html?tag=mncol Former HP chairman pleads not guilty to felonies]</ref>
HP Board of Director George Keyworth II, who was the source of the leak, resigned while Chairman Patricia Dunn stepped down from her position but remained a member of the Board.<ref>[http://www.businessweek.com/technology/content/sep2006/tc20060912_684141.htm Charges on the Way at Hewlett-Packard?]</ref> California Attorney General Bill Lockyer filed criminal charges against former Chairman Patricia Dunn, Kevin Hunsaker, former HP chief legal counsel, Ronald DeLia, private detective, Joseph DePante, owner of Action Research Group and Brian Wagner, employee of the Action Research Group. The felony charges include fraudulent wire communications, wrongful use of computer data, identity theft, and conspiracy to commit the crimes.<ref>[http://i.i.com.com/cnwk.1d/pdf/ne/2006/06-087_0a.pdf?tag=mncol;txt Superior Court of California, County of Santa Clara Felony Complaint]</ref> Dunn pleaded not guilty on the charges filed against her.<ref>[http://news.cnet.com/Former-HP-chairman-pleads-not-guilty-to-felonies/2100-1014_3-6135879.html?tag=mncol Former HP chairman pleads not guilty to felonies]</ref>
The Securities and Exchange Commission and the [[Federal Communications Commission]] also conducted a formal investigation regarding HP's leak investigation.<ref>[http://news.cnet.com/HP-discloses-formal-SEC-inquiry-into-spy-tactics/2100-1014_3-6136363.html?tag=txt HP discloses formal SEC inquiry into spy tactics]</ref> The House of Representatives' Energy and Commerce Committee also conducted an investigation and questioned Dunn regarding the pre-texting scandal. During the Congress inquiry, Dunn said that she didn't know that pre-texting is illegal and involved misrepresentation of identity.<ref>[http://news.cnet.com/Dunn-grilled-by-Congress/2100-1014_3-6120625.html?tag=mncol Dunn grilled by Congress]</ref>
In 2007, the court dismissed the charges filed against her in connection with the boardroom spy scandal while Hunsaker, DeLia and DePante were found guilty of one count of fraudulent wire communications and were ordered to complete 96 hours of community service. The case filed against them will be dismissed after completion of the community service.<ref>[http://news.cnet.com/Calif.-court-drops-charges-against-Dunn/2100-1014_3-6167187.html?tag=txt Calif. court drops charges against Dunn]</ref>
In 2007, the court dismissed the charges filed against her in connection with the boardroom spy scandal while Hunsaker, DeLia and DePante were found guilty of one count of fraudulent wire communications and were ordered to complete 96 hours of community service. The case filed against them was to be dismissed after completion of the community service.<ref>[http://news.cnet.com/Calif.-court-drops-charges-against-Dunn/2100-1014_3-6167187.html?tag=txt Calif. court drops charges against Dunn]</ref>
Attorney General Lockyer also planned to file a civil charges against HP in connection with the spy scandal however the company made an out of court settlement with the Attorney General's Office. HP agreed to pay $14.5 million. According to the Attorney General HP also agreed to adopt corporate governance reforms and to provide funding for the enactment of a new law to fight violations of privacy and intellectual-property rights.<ref>[http://news.cnet.com/HP-settles-with-California-in-spy-scandal/2100-1014_3-6141814.html?tag=txt HP settles with California in spy scandal]</ref>
Attorney General Lockyer also planned to file a civil charges against HP in connection with the spy scandal, however the company made an out of court settlement with the Attorney General's Office. HP agreed to pay $14.5 million. According to the Attorney General HP also agreed to adopt corporate governance reforms and to provide funding for the enactment of a new law to fight violations of privacy and intellectual-property rights.<ref>[http://news.cnet.com/HP-settles-with-California-in-spy-scandal/2100-1014_3-6141814.html?tag=txt HP settles with California in spy scandal]</ref>
===Lawsuit Againt Oracle===
===Lawsuit Againt Oracle===