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HP spying scandal: Civil settlement reached?

Not Dunn yet...

Tags: hp

By Ina Fried

Published: 7 December 2006 08:20 GMT

The California attorney general's office is expected to announce it has settled civil complaints with HP over the company's spying tactics.

The civil complaints are separate from the criminal charges already brought forward by the attorney general's office. Five people, including former HP chairman Patricia Dunn, are facing felony charges in connection with HP's campaign to determine the source of unauthorised media leaks. All five have pleaded not guilty.

A lawyer for the attorney general's office confirmed an announcement is scheduled for today but would not confirm or deny the civil settlement.

An HP representative declined to comment.

As part of its effort to uncover the source of news stories, HP investigators employed the practice of "pretexting", or using false pretences, to obtain the phone records of more than a dozen people, including board members, journalists and HP employees. The company also employed physical surveillance and sent a bogus tip with an electronic tracer to a reporter.

After the company's tactics came to light, Congress held hearings, and the FBI and Justice Department also launched probes. HP also faces a formal SEC inquiry into the matter.

The scandal prompted the departures of Dunn, general counsel Ann Baskins and two other HP employees.

Ina Fried writes for CNET News.com

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