Hurd Went Around HP Board For Contractor Settlement: Report

Not only did that happen, according to a report by The Wall Street Journal, but it was also Hurd's maneuvering around an investigation into the sexual harassment claim by HP's board that made the board decide enough was enough with Hurd.

Hurd abruptly resigned as HP's chairman, CEO and president on Aug. 6, following the conclusion of a sexual harassment investigation in which he was found in violation of HP's Standards of Business Conduct, though not its sexual harassment policy.

According to The Wall Street Journal, Hurd reached a settlement with the woman in question, Jodie Fisher, that was not authorized by the HP board, which was preparing to meet with both Fisher and her lawyer the day after Hurd's settlement was finalized.

Learning that, according to the Journal's sources, made the HP board doubt Hurd's cooperation with HP's internal probe of the sexual harassment claim.

If that's true, however, it's different than what another source said to be familiar with Hurd's thinking told the Journal previously. According to that other source, the Journal reported, HP's board had asked Hurd's lawyers to settle with Fisher weeks before they were scheduled to meet with Fisher and her lawyer.

The revelations come as a tricky situation for HP -- which saw billions in market capitalization evaporate following Hurd's resignation -- is becoming even more knotted.

HP has already been sued by one group of shareholders who allege HP's board members violated their fiduciary duties related to Hurd's exit and questioned whether Hurd should have been fired for cause and thus received far less than some $35 million he'll receive in severance and benefits.

Hurd has been replaced on an interim basis by HP CFO Cathie Lesjak. In the wake of Hurd's departure, HP solution providers described Hurd as a channel advocate whose competitive fire would be missed, regardless of his alleged transgressions.

HP executives have sought to reassure HP partners that the tech giant's channel focus remains intact.