HP Sued Over Hurd Exit: Reports - TheStreet

HP Sued Over Hurd Exit: Reports

A Connecticut-based law firm filed a shareholder derivative suit against the board of directors for breach of fiduciary duty in connection with events surrounding Hurd's resignation.
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NEW YORK (

TheStreet

) --

Hewlett-Packard

(HPQ) - Get Report

is being sued over the exit of CEO Mark Hurd,

The Wall Street Journal

reported on Thursday.

According to the report, a Connecticut-based law firm, Scott&Scott, filed a shareholder derivative suit against the board of directors for breach of fiduciary duty in connection with events surrounding Hurd's resignation. The plaintiff is Brockton Contributory Retirement System, a shareholder of HP.

The complaint cites the failure of the company to disclose the sexual harrasment investigation, which was later found to be groundless, and took objection to Hurd's exit package, among other things, the Journal reported.

The stock of HP has tanked 13% since the announcement of Hurd's resignation last Friday. Some have accused the board of acting against shareholders interests by forcing the resignation of a successful CEO, while others have criticized the exit package for being excessive, given the circumstances that led to the resignation.

The stock is flat in aftermarket trading on Thursday at $40.13.

--Reported by Shanthi Venkataraman in New York.

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