HP to face civil suit over spying scandal?

California's attorney general is close to making a decision as to whether it will file a civil suit against HP as a result of the company's spying campaign against journalists, employees and board members.

The state is still gathering information about the damage that may have been caused to those who HP spied on as the company attempted to unearth news leaks, according to sources close to the matter. What remains unclear is under which statutes the state is considering filing.

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Representatives from the attorney general's office have begun contacting some of those who had been under surveillance by HP investigators during its probe.

A spokesman for California's attorney general phoned silicon.com sister site CNET News.com's Stephen Shankland, one of three News.com reporters whose personal phone records were obtained by HP without their knowledge or permission. He requested contact information for all three reporters.

Shankland quoted Dresslar as telling him: "Expect to be contacted by our office in the near future."

One of the sources, who spoke on condition of anonymity, said the attorney general is trying to determine the kind of damage that may have been caused by HP's spying, the source said.

HP representative did not respond to requests for comment.

The spying operation began in 2005 and some of the tactics used to gather information included duping telephone company employees into turning over private records.

Five people connected to HP's investigation, including Patricia Dunn, the company's former chairman, have been charged by California's attorney general with conspiracy, identity theft and two other felonies. All five have entered not guilty pleas.

In other news, a shareholder lawsuit accuses HP executives of selling more than $40m in company stock just prior to the spying being made public, the Associated Press reported.

Filed in Santa Clara County Superior Court on behalf of all HP shareholders, the claim accuses HP leaders, including CEO Mark Hurd, of engaging in insider trading, breaching their fiduciary duties and causing substantial harm to the company, the AP reported.

Greg Sandoval writes for CNET News.com