Shareholders Sue HP Over Hurd Resignation

The Hewlett-Packard (HP) board of directors is being sued by the the Brockton Contributory Retirement System over the disclosure of information concerning the resignation of former CEO Mark Hurd.

The shareholders are claiming that the disclosure of information was directly responsible for a significant drop in the company's share value.

The former CEO had resigned after an internal investigation found he had fabricated an expense in order to hide his relationship with a contractor.

According to the lawsuit, when Hurd resigned from his position as Chairman and CEO, the company's share value dropped by around $9 billion.

The lawsuit has accused the Board of Directors for inappropriate disclosure of information regarding an internal investigation on Hurd and failing to monitor insider trading in the company.

The pension fund has also sued Chief financial officer Cathie Lesjak, as well as Hurd, for insider trading while at the company.

The shareholders have asked for punitive damages for the breach of fiduciary duty and mismanagement of corporate assets for paying tens of millions of dollars to Hurd in severance pay.