HP settles civil lawsuit over spying

Company agrees to pay $14.5M for privacy fund

By Nancy Weil

December 7, 2006 12:00 PM ET

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IDG News Service - Hewlett-Packard Co. agreed to a $14.5 million settlement in the California civil lawsuit related to the company's spying scandal. Under terms of the settlement with the California attorney general, HP will pay $13.5 million to create a "Privacy and Piracy Fund" for law enforcement activities related to privacy and intellectual property rights operated in the state attorney general's office.

The company will also pay $650,000 in civil penalties and $350,000 to cover expenses of the investigation, California Attorney General Bill Lockyer announced this afternoon.

HP executives and private investigators retained by the company still face criminal charges in the scandal, which involves the alleged use of "pretexting," or pretending to be someone to obtain personal phone records.

More to come

Reprinted with permission from

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