caltradesecrets.com

HP Sues Former CEO Mark Hurd for Threatened Misappropriation of Trade Secrets

In Breaking News on September 8, 2010 at 11:21 am
SAN FRANCISCO - SEPTEMBER 24:  Oracle CEO Larr...
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Hewlett-Packard Company filed suit yesterday against its former CEO, Mark V. Hurd in Santa Clara County Superior Court.  Hewlett-Packard Co. v. Hurd, 110CV181699 (Filed Sept. 7, 2010).  HP alleges that in “his new positions, Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing HP’s trade secrets and confidential information to others.” Id. ¶ 1. “HP is informed and believes . . . that Hurd, the former Chairman of the Board, Chief Executive Officer, and President of HP, is violating and will continue to violate his legal obligations and express contractual obligations owed to HP to affirmatively maintain the confidentiality of HP’s trade secrets and confidential information.”  Id. ¶ 4.  HP seeks injunctive relief and “other” damages.  Id. ¶ 3.

Specifically, HP seeks the following relief:

  • an order “requiring Hurd to provide HP with written notification and further information concerning Hurd’s new position with Oracle pursuant to  his trade secret protection agreements with HP”;
  • an order enjoining Hurd from “holding a position with a competitor in which he will serve in a capacity that will make it impossible for him to avoid utilizing or disclosing HP’s trade secrets and confidential information pursuant to Civil Code section 3462.2(a)”

Id. ¶ 5.

  • an order enjoining Hurd from “directly or indirectly disclosing or utilizing HP’s trade secrets and confidential information; and
  • appointing a special master to “review, on a regular basis, Defendant’s compliance with the requested injunctive relief and requiring Defendants, . . . to provide a monthly verified statement of compliance that Defendants, and each of them, have not used or disclosed any of HP’s trade secrets and confidential information.”

Prayer ¶¶ B(1)-(3).

The suit alleges causes of action for (1) breach of contract and (2) threatened misappropriation of trade secrets.

This suit follows on the heels of the a decision by the U.S. Third Circuit Court of Appeals, which upheld an injunction blocking an expert on nooks and crannies from jumping to rival Hostess Brands, Inc.

By CHARLES H. JUNG

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