Shareholders Sue HP Directors for Kickbacks and Bribery
Some top Hewlett-Packard directors, in place since 2007 to 2009, are being sued by shareholder due to violations of federal kickbacks and bribery laws. These directors encouraged and tolerated the payment of “influencer fees” to government vendors for contracts to design information technology systems. Justice Department and US Securities Exchange Commission joined hands with a German Public Prosecutor’s Office to examine if it has the same bribery issues overseas.
These directors “consciously condoned HP’s illegal and unethical marketing practices,” and “put the company at risk of having its U.S. government contracts rescinded,” the shareholders claim, adding that HP sales to U.S. agencies from 2007 to 2009 totaled more than $880 million.
The lawsuit was sparked last August when HP agreed to pay $55 million to a Justice Department averting an investigation of overcharging taxpayers. The same thing happened when they silenced a False Claims Act lawsuit filed by a whistleblower, supported by government.
“It is painfully obvious that HP’s board has not and will not act as a disinterested and independent check on illegal corporate action, and that to remedy this misconduct, HP’s shareholders need to bring suit,” according to the complaint.
Penalty will be in the form of salary repayment of directors within 2007 to 2009. When it comes to HP’s board, we know how stronghanded they can be. Remember Mark Hurd, the guy that used to be in charge?
In other HP news, the company continues to grow, with the closed ArcSight acquisition and new employees worldwide.
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