Hewlett-Packard Co. and Oracle Corp. said they resolved litigation over the appointment of Mark Hurd as a president of Oracle and reaffirmed the long-term partnership between the two companies.
“HP and Oracle have been important partners for more than 20 years and are committed to working together to provide exceptional products and service to our customers,” Cathie Lesjak, HP’s interim chief executive officer, said today in a statement.
Hurd was sued Sept. 7 by HP, which tried to block his move. The company said working as a president at Oracle would make it “impossible” for him to avoid using or disclosing HP’s trade secrets and confidential information. Hurd will adhere to his obligations to protect HP’s confidential information while fulfilling his responsibilities at Oracle, the companies said.
As part of the resolution of the legal dispute, Hurd and HP agreed to modify terms of his separation agreement from HP, including waiving his rights to 330,177 performance-based restricted stock units granted in January 2008, HP said in a regulatory filing. Hurd also waived his rights to 15,853 restricted stock units granted in December 2009, HP said.
The settlement is unlikely to affect HP’s stock price or limit Oracle’s ability to compete with HP, said Aaron Rakers, an analyst at Stifel Nicolaus & Co. in St. Louis.
‘Neutral’ Affect
“At face value when I look at it, it’s more of a neutral on the stock,” said Rakers, who recommends buying HP shares and doesn’t own any himself. “Everyone is waiting for the naming of the next CEO.”
Legal experts have said that HP would be unlikely to prohibit Hurd’s move because California’s courts favor letting employees move freely. The theory that trade secrets will inevitably be disclosed “won’t work in California as a reason to prevent someone from taking a job,” Mark Lemley, a professor at Stanford Law School who specializes in intellectual property, said in an interview earlier this month.
HP gained 36 cents to $39.75 in extended trading after rising 25 cents to $39.39 at 4 p.m. on the New York Stock Exchange. The stock has dropped 15 percent since Hurd resigned on Aug. 6.
