After being hired as Oracle’s new co-president and director last Monday, Hewlett-Packard former Chief Exec Mark Hurd is now facing law suit to prevent him from putting HP’s trade secrets in peril.
Hurd resigned from HP last August 6 after being accused of filling inaccurate expense reports to Jodie Fisher – a marketing contractor who worked for Hurd’s office from 2007 to 2009. Fisher also accused Hurd of sexual harassment, though HP found no harassment had occurred.
Hurd’s separation agreement from HP didn’t include a non-compete provision, but involves a two-year confidentiality pact. HP argues that Hurd cannot perform his daily duties at Oracle without spilling HP’s trade secrets and confidential information.
At Oracle, Hurd will oversee sales, marketing, and support. And given his expertise in IT hardware and integrating large acquisitions, Wall Street analysts agree that Oracle will be at a clear advantage against rival HP.
Oracle shares soared 5.87% at $24.27 last Tuesday, as investors celebrated Hurd’s new post; while, HP shares closed 1.04% lower at $39.92 on the New York Stock Exchange.
Interestingly, Oracle is HP’s major partner and rival. Oracle competes with HP in the server market, after Oracle’s $5.6 billion purchase of Sun Microsystems, which closed earlier this year.
Oracle execs assert that this “vindictive” lawsuit is an act of utter disregard for their partnership, their joint customers, and HP’s own shareholders and employees.
Source: Reuters
