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Chancery Allows Unsealing of Allred Letter to Former HP CEO Hurd

By Francis G.X. Pileggi

Espinoza v. Hewlett-Packard Company, C. A. No. 6000-VCP (Del. Ch. Mar. 17), read 70-page Court of Chancery opinion here.

The background of this decision has been referenced in the popular press for many months. It involves the former CEO of Hewlett-Packard, Mark Hurd. In August 2010 he resigned as CEO amid allegations of improper conduct regarding a former HP contractor, Jodie Fisher. A letter to Hurd was sent by Fisher's lawyer, Gloria Allred, alleging certain claims against Hurd and HP. A settlement was reached on August 5, 2010 and Hurd resigned the next day.

Court of Chancery Rule 5(g) regarding confidential filings, and the procedures and considerations relating to those filings, is discussed in great detail and this opinion is destined to be a useful reference for corporate litigators who need to be familiar with that rule.

This case started as a demand for books and records pursuant to DGCL Section 220 regarding the handling of Hurd's resignation by HP. The Court of Chancery allowed Hurd to intervene in this case in order to allow him to argue why the Allred letter should be kept confidential. Hurd argued that California law applied. The Court concluded that Hurd did not  demonstrate good cause why the Allred letter should be kept under seal.

Bloomberg reports here with more details and explains that Hurd will appeal the decision, but that HP "takes no position" on the matter.

Full post as published by Delaware Corporate and Commercial Litigation Blog on March 18, 2011 (boomark / email).