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'No evidence yet' against HP boss HP chairman to leave immediately
(about 1 hour later)
Hewlett-Packard's boss has not been linked to any criminal activity, officials probing allegations of illegal spying by the firm have said. Hewlett-Packard's chairman Patricia Dunn has resigned with immediate effect amid allegations of illegal spying by the US computer firm.
Mark Hurd is set to reveal details of how HP is dealing with claims that it spied on staff and journalists to find the source of boardroom leaks. Chief executive Mark Hurd said he had accepted the offer from Ms Dunn, who had earlier indicated she would leave in January over the scandal.
His briefing, later on Friday, will include a report from HP's law firm on how the internal inquiry was conducted. Mr Hurd described methods used by HP to try and identify who was behind boardroom leaks as "very disturbing".
California's chief law officer said his probe into the affair was continuing. He said he would take over as chairman of the firm.
Confidential data And later this month he will give evidence to a Congressional committee.
"We don't yet have any evidence that would lead to the chief executive as one of those that committed the crimes," said Bill Lockyer, California's attorney general. Undercover plans
But he added: "We are not complete yet. We haven't finished the investigation." HP's law firm gave a report on how the internal inquiry was conducted.
HP shares were trading down 0.7% at $34.62 on Friday, having fallen 5% on Thursday on speculation that the investigation was focusing on the possibility that Mr Hurd may have known about the alleged actions. This revealed that surveillance had been carried out on journalists and emails with tracer systems had been set up to try and lead the company to the source of the leak.
Mr Hurd and other HP bosses have agreed to testify before a Congressional committee looking into the affair on 28 September. Mark Hurd was apologetic and is under pressure
Patricia Dunn has said she will quit as chair of HP in January Plans, including a PowerPoint presentation, had also been drawn up for possible undercover investigations at the offices of media outlets, including the Wall Street Journal.
"This has nothing to do with the strategy or operations of HP," Mr Hurd said in a statement issued by the company on Thursday. However HP said there had been no evidence that these proposals had been executed.
"What began as an effort to prevent the leaks of confidential information from HP's boardroom ended up heading in directions that were never anticipated." HP shares gained 0.7% to $34.62 on Friday, having fallen 5% on Thursday on speculation that the investigation was focusing on the possibility that Mr Hurd may have known about the alleged actions.
Hewlett-Packard has admitted that investigators hired to look into the leaks obtained phone call records of HP board members, company staff and journalists by pretending to be them. Hewlett-Packard has admitted that investigators hired to look into the leaks obtained phone call records of HP board members, staff and journalists by pretending to be them.
The practice - known as "pretexting" - is a common one among private investigators but tests the limits of California state laws.The practice - known as "pretexting" - is a common one among private investigators but tests the limits of California state laws.
Prosecutors believe it violates laws covering identity theft and unauthorised access to computer data.Prosecutors believe it violates laws covering identity theft and unauthorised access to computer data.
Mr Hurd could face pressure to resign if newspaper suggestions that he may have known about the "pretexting" activities are proved correct.
The scandal has already claimed the scalp of HP chairman Patricia Dunn, who has said she will step down over the way she handled the affair.
Federal prosecutors have also asked for information about HP's probe.