HP Plans Independent Inquiry Into Hurd Settlement Package

The inquiry will be conducted in conjunction with a lawsuit filed by shareholders that questions HP's handling of Hurd's departure, particularly why he received millions of dollars in severance when he resigned in August 2010.

According to the filing, another HP shareholder requested that the committee investigate the board's decision to approve the separation agreement between HP and Hurd, putting a temporary hold on the shareholder lawsuit. HP and the plaintiffs have agreed to the stay of the suit, according to the filing. Hurd has not agreed, pending that information and documents from HP shareholders be shared with him, according to the filing.

The suit claims that HP's board breached its fiduciary duties, wasted corporate assets and caused unjust enrichment of "an allegedly unreasonable and grossly excessive severance award," according to the filing.

Hurd left HP after following the conclusion of a sexual harassment investigation in which Hurd was found to be in violation of HP's Standards of Business Conduct, though not its sexual harassment policy, according to HP.

Last September, Oracle hired Hurd as co-president and a member of the board. Oracle's addition of Hurd led to a falling out between the software maker and HP, which once had a strong partnership.

Hurd's resignation from HP has resulted in a flurry of lawsuits, including one dispute between HP and Oracle that was later settled.