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Home >> Business
UPDATED: 15:36, December 09, 2006
HP to pay 14.5 million dollars to settle charges in pretexting scandal
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Computer giant Hewlett-Packard Co. has agreed to pay 14.5 million dollars to settle civil charges stemming from a board-leak probe, The Wall Street Journal reported on Friday.

However, HP didn't admit any wrongdoing under the settlement with California Attorney General Bill Lockyer, who has brought criminal charges against former executives and others involved in the company's investigation into the media leaks, said the report.

The settlement won't affect those cases, legal experts said, but it suggests that HP itself isn't likely to face criminal charges. All the defendants in the criminal cases have pleaded not guilty.

The settlement requires HP to pay 13.5 million dollars to a new "privacy and piracy fund" for law enforcement activities related to privacy and intellectual property rights.

HP also agreed to pay an additional 650,000 dollars in civil penalties and 350,000 dollars to cover the costs of the attorney general's investigation. The company also agreed to a series of internal governance overhauls that are aimed at heading off any possible abuse of privacy rights in the future.

Prosecutors said the company used practices that included pretexting -- obtaining private phone records under false pretences -- of company directors, employees and journalists as part of a probe that turned into a high-profile scandal this fall.

Source: Xinhua


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