updated 8/13/2010 4:01:32 PM ET 2010-08-13T20:01:32

Shareholders of Hewlett-Packard Co. have filed a "derivative lawsuit" against the technology company and its board over former CEO Mark Hurd's abrupt resignation last week.

A derivative lawsuit lets shareholders sue executives or board members over claims that their actions harmed the company as a whole.

The lawsuit seeks unspecified damages and changes to HP's corporate governance. It was filed in California Superior Court in California Tuesday on behalf of shareholders by Brockton Contributory Retirement System against Hurd, Interim CEO and Chief Financial Officer Catherine Lesjak and HP's other board members.

HP to signal direction with choice of new chief

The suit claims HP lost "significant credibility" due to the controversy that erased more than $9 billion in market capitalization when HP's shares started trading on Monday following the resignation. It also says that Hurd's severance package , which could top $40 million, could have been "dramatically limited" by HP's board by firing him for cause.

Hurd resigned last Friday after an investigation into a sexual harassment claim found that he falsified expense reports covering meetings with a female events contractor. Hurd has settled separately with the woman.

The Palo Alto, Calif., company said it sexual harassment policy was not violated, and both Hurd and the contractor, Jodie Fisher , said they have not had sexual relations.

HP declined to comment on the lawsuit.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Video: HP exec resigns after scandal

  1. Closed captioning of: HP exec resigns after scandal

    >>> new details this morning about the sudden forced resignation late last week of hewlett-packard ceo mark hurd . our melissa francis joins us with more. good morning.

    >> good morning. we're learning more about the woman at the center of the scandal. her name is jody fisher, and she was formerly a reality show contestant turned hp marketing consultant. she apparently greeted people at ceo functions from 2007 to 2009 . she sued mark hurd for sexual harassment, and that suit was settled, but it revealed expense irregularities to the tune of $30,000. she's walking away with $34 million. he was a well respected and fiscally responsible leader until this. and stockholders are wondering what is next for the company. natalie, back to you.

    >> we'll have to wait and see what happens today. melissa, thank you.


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com