2006 HP Spying Scandal

On September 5, 2006, Newsweek revealed that Hewlett-Packard's general counsel, at the behest of HP chairwoman Patricia Dunn, had contracted a team of independent security experts to investigate board members and several journalists in order to identify the source of an information leak. In turn, those security experts recruited private investigators who used a spying technique known as pretexting. The pretexting involved investigators impersonating HP board members and nine journalists (including reporters for CNET, the New York Times and the Wall Street Journal) in order to obtain their phone records. The information leaked related to HP's long-term strategy and was published as part of a CNET article in January 2006. HP hired public relations firm Sitrick and Company to manage their media relations during the crisis.

Patricia Dunn claimed she did not know beforehand the methods the investigators used to try to determine the source of the leak. Board member George Keyworth was ultimately accused of being the source and on September 12, 2006, he resigned, although he continued to deny making unauthorized disclosures of confidential information to journalists and was thanked by Mark Hurd for his board service. It was also announced at that time that Dunn would continue as chairwoman until January 18, 2007, at which point HP CEO Mark Hurd would succeed her. Then, on September 22, 2006 HP announced that Dunn had resigned as chairwoman because of the "distraction her presence on our board" created. On September 28, 2006, Ann Baskins, HP's general counsel, resigned hours before she was to appear as a witness before the House Committee on Energy and Commerce, where she would ultimately invoke the Fifth Amendment to refuse to answer questions.

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