NEWS: Dunn steps down from HP Board

[via BetaNews 1 & 2]

Robert Scoble has been commenting a lot about this very bad story for about a week (his first post – HP spies on its own Board members). The story is today moving on.

The Justice Department has launched a probe into Hewlett-Packard’s methods to uncover the source of press leaks. […] HP chairman Patricia Dunn authorized the move, which peered through the phone records of all its board members, and nine reporters, including those at CNET News.com, The Wall Street Journal, and the New York Times.

HP’s chairman will step down following the company’s January 2007 board meeting as a result of the press leak investigation she launched and the techniques used, which both the state of California and the U.S. Government are investigating as possible breaches of law.

Patricia Dunn has agreed to step down after the board apparently decided to ask her to do so. Dunn on Friday rebuffed shareholder calls for her to resign, but had indicated she would leave HP at the request of the board. […]

HP CEO and president Mark Hurd will assume Dunn’s duties, as well as retain his prior positions. Dunn would stay in the company, although as a director. In addition, the company appointed Richard Hackborn lead independent director.

In a statement, as she had in the past, Dunn continued to stress the importance of the investigation to uncover who was leaking confidential information. On the other hand, she did express dismay on how the situation was handled.

“Unfortunately, the investigation, which was conducted with third parties, included certain inappropriate techniques,” she said. “These went beyond what we understood them to be, and I apologize that they were employed.”

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