HP Files Lawsuit to Stop Hurd from Taking Oracle Position

Earlier today, TMC reported on Oracle’s (News - Alert) welcome of new co-president, former Hewlett Packard CEO, Mark Hurd. This appointment came just one month after Hurd resigned from HP amid accusations of sexual harassment.

TMC’s (News - Alert) own CEO, Rich Tehrani weighed in on the subject in his blog post today, calling Hurd’s appointment to Oracle an “amazing turn of events.” He also commended Oracle CEO Larry Ellison (News - Alert), for backing up his words with actions.

Ellison was a vocal opponent of the Hurd’s forced resignation at HP.According to breaking news from the Star Tribune, HP is now taking legal action to try and stop Hurd from taking the reins at Oracle. HP filed the complaint today in a California state court directly against Hurd.

The events surrounding the managerial maneuvering of the partners-turned-competitors were not likely to continue without some form of upheaval, which has arrived just one day after Hurd was named to Oracle leadership. 

Now, HP, Oracle and Hurd all find themselves in a predicament that may be up to the courts to decide the outcome. HP was forceful in its desire to remove Hurd from his leadership position, but doesn’t want him to find a home with a competitor.

This is a legitimate worry. Even through Hurd does have a non-compete agreement with HP, Oracle presents the primary threat to HP dominance. And, a key compliant listed against Hurd is the fact that HP believes there is no way he can perform his job at Oracle without sharing HP trade secrets and violating his confidentiality agreement, which was signed as part of his severance package from HP that could top $40 million.

Is the legal battle worth it for Oracle and Hurd? If he is allowed to take the position at Oracle, anything that emerges from its R&D department that even smells like something out of HP is sure to bring legal action.

The lawsuit shouldn’t be a tremendous surprise to Hurd or Oracle. Hurd was, after all, privy to HP’s strategic plans, as well as a “highly confidential” analysis of Oracle’s competitiveness against HP.

Oracle appears to be interested in taking the risk, given Hurd’s ability to drive successful growth and market dominance. Ellison surely didn’t make the offer without the intention to support Hurd in a lawsuit - and given the potential market gain if Hurd is able to stay, the return on investment is sure to be swift and highly profitable.