Prosecutors have agreed to drop felony charges against former Hewlett-Packard ( HPQ) Chairwoman Patricia Dunn if she pleads guilty to a misdemeanor, according to news reports.

Dunn faces felony charges for her role overseeing a controversial boardroom leak investigation within H-P, in which private investigators accessed personal phone records of directors, employees and journalists.

In October, Dunn and four other defendants were indicted on felony counts of identity theft, conspiracy, fraud and illegal use of computer data.

According to an AP report Thursday, the California attorney general's office has now offered a plea deal in which felony charges would be dropped in exchange for guilty pleas to misdemeanor charges.

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