|HP has resolved its legal action against former CEO Mark Hurd, now co-president at Oracle.|
Story updated with additional information from HP and Oracle's joint statement. PALO ALTO, Calif. ( TheStreet) -- Hewlett-Packard ( HPQ - Get Report) says that it has resolved its legal action against former CEO Mark Hurd, who was recently appointed co-president of database giant Oracle ( ORCL - Get Report). The lawsuit for breach of contract and threatened misappropriation of trade secrets sent shockwaves through the tech sector when it was filed earlier this month, although HP says that it has now buried the hatchet with Hurd.
HP revealed the deal in a regulatory filing on Monday. "As part of that resolution, HP and Mr. Hurd agreed to modify the terms of the Separation Agreement and Release entered into between them on August 6, 2010," it said. Hurd, it added, had agreed to waive his rights to 330,177 performance-based restricted stock units that he was granted in January 2008, and a further 15,853 time-based restricted stock units that he was granted in December 2009. HP's intellectual property will also remain secure, according to a joint statement with Oracle released after market close. "While the terms of the settlement are confidential, Mr. Hurd will adhere to his obligations to protect HP's confidential information while fulfilling his responsibilities at Oracle," it said. The executive's recent departure from HP amid an expenses scandal was seen as a major blow to the tech giant. Hurd, who took the helm at HP following the departure of Carly Fiorina, had earned a reputation for tight expense control, and he was credited with turning the tech giant's fortunes around. HP's lawsuit also threatened to wreck the company's long standing partnership with Oracle, and had already prompted some saber-rattling from fiery Oracle chief Larry Ellison. Now, however, it's clearly all kiss and make up. "HP and Oracle have been important partners for more than 20 years and are committed to working together to provide exceptional products and service to our customers," said Cathie Lesjak, HP's CFO and interim CEO, in the joint statement. "We look forward to collaborating with Oracle in the future. "Oracle and HP will continue to build and expand a partnership that has already lasted for over 25 years," added Ellison. HP shares crept up 25 cents, or 0.64%, to $39.39 in extended trading. Oracle's stock was up 1 cent, or 0.04%, to $27.49. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com.