HARASSMENT CLAIMS: HP Shares Drop after CEO Accused of Sexual Harassment Resigns

August 6, 2010

Palo Alto - Shares of Hewlett-Packard Co. dropped by almost 9% when Chairman and CEO Mark Hurd resigned after a sexual harassment investigation.

According to reports, Hurd’s resignation took effect immediately. He decided to leave after the investigation showed violations of company rules.

The probe was triggered by a sexual harassment claim filed against Hurd and HP by a former company contractor.

Findings show that HP’s sexual harassment rules were not violated. However, it was determined that the company failed to follow its standards of business conduct.

Reports said HP placed Chief Financial Officer Cathie Lesjak as the interim CEO. She has been working in the technology company for 24 years.

HP announced that a board committee will be responsible in looking for a new CEO.