HP Settles Spying Charges for $14.5 Million

Hewlett-Packard agreed Thursday to pay $14.5 million to California to settle charges it violated the law when it used private investigators to spy on and get the phone records of reporters, employees and directors in a botched leak investigation.

The money will go to create a new fund that will be used by California's Attorney General into investigations of intellectual property piracy and privacy violations.

"The Hewlett-Packard incident has helped shine a national spotlight on a major privacy protection problem," Attorney General Bill Lockyer said in a statement. "With its governance reforms, this settlement should help guide companies across the country as they seek to protect confidential business information without violating corporate ethics or privacy rights."

Lockyer said that the new fund will help ensure that when businesses cross the legal line they will be held accountable. He also applauded the company.

"Fortunately, Hewlett-Packard is not Enron," he said. "I
commend the firm for cooperating instead of stonewalling, for taking instead of shirking responsibility, and for working with my office to expeditiously craft a creative resolution."

Full News.com story.

HP admitted no wrongdoing in the settlement and still hasn't told targets of the spying what exactly happened.

Criminal charges against five former HP employees are still pending.

Photo: ehatcatzin