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*December 12, 2006* – HP settled a civil lawsuit agreeing to pay $14.5 million to the California Attorney General’s office, HP announced on Thursday, resolving the fallout of a corporate scandal with the imaging and printing manufacturer.
In September, HP faced corporate crisis after a boardroom leak which led to the alleged internal spying of its directors.The attorney general accused HP private investigators of illegally gaining telephone records under false pretexts. The multi-million settlement thereby ends the pretexting lawsuit.
"There was no finding of liability against HP as part of the settlement," stated a Dec. 7 HP press release.As part of the settlement, the California Attorney General will not pursue civil claims against HP.
HP will have new internal controls including independent directors for revising the company ethics policy.
$13.5 million of the settlement dollars will be used a Privacy and Piracy Fund to help CA prosecutors to crack own on piracy, according to the HP press release.$650,000 will be used to pay damages, and $350,000 will be used for general investigation costs of the attorney general’s office.
HP is still under investigation by a Congressional committee, according to a Dec. 7 BBC News article.