Former H-P Chair Dunn Pleads Not Guilty

Charges arose from the company's pretexting scandal.
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Former

Hewlett-Packard

(HPQ) - Get Report

Chairwoman Patricia Dunn pleaded not guilty to felony charges of spying on fellow board members, H-P employees and journalists in a court appearance Wednesday, according to news reports.

Dunn was at a Santa Clara, Calif., courthouse for her arraignment following her indictment last month by California Attorney General Bill Lockyer. Dunn, along with four other individuals, has been charged for their roles in a controversial company investigation into media leaks.

H-P has acknowledged that investigators hired by H-P accessed the personal phone records of board members, employees and journalists by impersonating those individuals -- a practice known as "pretexting."

Since then, details have emerged of a mind-boggling spying operation in which investigators dug through trash bins, surreptitiously staked out the house of H-P board members and sent emails with tracing mechanisms to one newsroom.

While Dunn authorized the internal leak investigation and oversaw much of it, she has maintained that she was unaware that the outside investigators used illegal tactics to figure out who was leaking company information to the press.

Shares of H-P, which is slated to deliver its quarterly earnings report on Thursday, were off 1.5%, or 63 cents, at $40.04.