Hewlett-Packard agreed to pay $14.5 million to settle a civil case brought against it by the California Attorney General’s office related to the company’s internal investigations of its board members. The lion’s share of the settlement will be used to establish a Privacy and Piracy Fund that will help state prosecutors fight consumer privacy and piracy violations. Felony criminal charges are still pending against five people involved in the scandal, in which company investigators were accused of impersonating board members, employees, and journalists in order to obtain personal phone records.
Also as part of the settlement, HP will make several changes to its corporate governance structure: A new independent director will be the board’s watchdog with regard to ethical and legal requirements. Both the chief ethics and compliance officer and chief privacy officer will receive greatly expanded duties. The company will also establish a new Compliance Council that reports to the CEO, the board, and the audit committee.
(more…)

