Update: HP, Oracle settle Hurd litigation, affirm partnership

Hewlett-Packard and Oracle have settled the lawsuit HP filed against its former CEO and current Oracle co-President Mark Hurd, and "reaffirmed their long-term strategic partnership," the companies said Monday.

Hurd left HP last month following a scandal involving his relationship with a contractor and the alleged falsification of expense reports. He was named co-president of Oracle earlier this month, replacing Charles Phillips.

HP subsequently sued Hurd, saying that he would not be able to perform the new job without violating a confidentiality agreement tied to his severance package. Oracle CEO Larry Ellison called the suit "vindictive" and said it put the two companies' longtime relationship in jeopardy.

Hurd "will adhere to his obligations to protect HP's confidential information while fulfilling his responsibilities at Oracle," according to a statement.

Hurd received $12.2 million in severance when he left HP and an additional tens of millions of dollars' worth of stock and stock options.

According to a filing with the Securities and Exchange Commission on Monday, HP said Hurd waived his right to more than 345,000 restricted HP shares. According to the Wall Street Journal, the shares were valued at $13.6 million, based on HP's trading price of $39.39 Monday afternoon.

In addition, the companies said they plan to continue to build upon their decades-long partnership, Ellison and interim HP CEO Cathie Lesjak said in respective statements.

Despite those niceties, the reality is that Oracle and HP are increasingly in competition with each other. This fact was underscored on Sunday, when both companies announced private cloud products for running Oracle software.

Copyright © 2010 IDG Communications, Inc.

It’s time to break the ChatGPT habit
Shop Tech Products at Amazon