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HP Pays $14.5M to Make Civil Charges Disappear
theodp writes "The California Attorney General's Office negotiated a $14.5 million payoff from HP as part of a settlement that calls for the state not to pursue civil charges related to the now infamous spy scandal against the company and its current or former officers or directors (felony criminal charges against five individuals still remain). HP also agreed to maintain the watchdog positions of chief ethics officer and chief privacy officer for five years."
And I thought corruption only occurred on HP CD burners.
"Normal" people go to jail.....
Sigh, could you not even bother to read the summary properly? What part of "felony criminal charges against five individuals still remain" do you find difficult to grasp?
Ah, the wonderful Land Of The Fee.
When do they remodel the blindfold on the statue of justice so it's slipped and she can wink and look suggestively at her back pocket?
Such are the consequences of giving human rights to corporations.
There are shills on slashdot. Apparently, I'm one of them.
People still might. The AG isn't waiving rights to press criminal charges against indiviuals, and in fact is pressing ahead with at least five cases, including against Dunn.
This actually doesn't seem like a terrible thing to me. A civil case against HP would be an enormous burden on the state of California, drag on for years, and by the virtue of the sheer size of HP, be unlikely to result in anything more than a wrist-slap. This settlement gets HP to admit to wrongdoing, puts some measures in place (pathetic though they may be) to try and keep them from doing it again, and not only saves the state money, but gives them a warchest to go after the real villains in this case: the executives who felt that the shield of incorporation gave them the right to condone and engage in unethical behaviour.
Here in holland, where bikes are stolen as a kind of national sport it would be like: Steal 1 bicycle. get caught, go straight to jail. Steal a hundred bicycles, get caught, return 5 of them, say you are sorry, and that it was too easy and get a 'responsible citizens award' because you cooperated with the law.
The case did only involve a civil complaint, so it probably would have ultimately ended up with a financial settlement and some sort of compromised "corrective" measures like we see here, but I really think this is an injustice for the people who had their identities and privacy compromised, and for HP shareholders in the long run. The evidence that senior executives at HP, potentially including Mark Hurd, either ignored or were ignorant of the ongoing, "probably illegal" actions is pretty well documented, and pretty overwhelming.
Patricia Dunn took pretty much all the heat for this, and that's unfortunate for her and HP. It seems to me like she should have had a better grip on what was happening at HP, but it doesn't seem to me like she should have been the only one with that responsibility. A full, objective, and independent investigation should have been the first think on everybody's list. Instead, this case is now settled, Congress has moved on, and Dunn will be focussed on proving her innocence.
The unfortunate thing for Mark Hurd is that his level of responsibility and accountability wasn't determined in this process. The second HP hits a performance blip, this scandal will be the first thing on every shareholder's mind when they're thinking of who to blame. When that day comes, I wouldn't want to be in Mark Hurd's shoes.
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justen
justen.blogspot.com
No, they engaged in illegal behavior. Not everything that is unethical is illegal. See our current political system and the campaign finance system that supports it. Tell me what is ethical about the fact that elected Senators and Congressman don't even bother to read most of the bills they vote on. They don't even write the bills anymore, their staffers do. You know, the same staffers who will eventually leave to take high paying jobs with lobbying firms after paying their dues writing bills that are friendly to the interest those lobbyist represent. Completely unethical, 100% legal.
In fact, I wouldn't be at all surprised to see most of these five individuals get what amounts to a slap on the wrist after a large donation or two is made to the proper re-election campaign committees or PACs. Sure one of them will have the book thrown at them so it appears action is being taken. Probably the lowest person on the totem pole. Then, after the smoke clears from that conviction suddenly the state will find no compelling reason to drag these remaining cases out. The poor defendants will have been put through enough. A small fine and 6 months probation will suddenly be more than enough punishment. After all, their names will have already been drug through the mud. That punishment alone will have done more damage than anything they state could do. They will have learned their lessons. I can see it now. What a joke.
The summary is very misleading in the way that it describes HP as paying money to make the case disappear. This wasn't a criminal case where they were buying off a judge to rule favorably. This was a civil matter. and 99 times out of 100, civil matters are about one thing: money. They can either pay money in the settlement, pay money as a result of a judgment from a trial, be dismissed through a motion, or be found not guilty from a trial. Settlement is COMMON, because it allows both sides to save costs from not having to pay for a costly trial. And trials are MUCH more costly than most of what happens pre-trial.
This isn't some back-alley dealing, it's one legitimate and often used method of resolving civil disputes quickly and cost-effectively. And on top of that, it means that HP can't appeal the decision because they agreed to it. If the case had gone to trial and verdict and resulted in a decision HP didn't like, they could have appealed and kept the case going for years without resolution, while at the same time increasing both their costs and the costs of the state in trying the case.
How on earth can anyone actually feel free in a country where citizens are put behind bars for minor fraud, while businesses like HP (which are actually run by REAL people!!) can pay-off a judge while calling it 'being sanctioned'?
It's called a CIVIL case. If you're not familiar with the American legal system you probably don't know how far off base you are. You can not be "put behind bars" in a civil case. This is a case to determine liability in terms of monetary damages. The criminal case will still happen and that's where people get jailed.
Either you don't know what you're talking about or you're just a troll.
Dedicated Cthulhu Cultist since 4523 BC.
When did impersonating a law enforcement officer get redefined as "pretexting". The former is a criminal offense and the latter is revisionist bullshit. There should be criminal charges for every person involved in this idiotic farce.
Professional Politicians are not the solution, they ARE the problem.
The appointment of a Chief Ethics Officer means you'll need to complete online training every year to ensure that you understand the ethical dimensions of your job.
Here's an example verification, which I found by hacking one of the servers:
Suppose a supplier offers to bribe you with a pair of World Series tickets to increase your purchases from his company. Should you:
a) Say yes! Baseball is America's game, and give-and-take is good business.
b) Refuse the offer and report the incident to top management
c) Ask about the seats. Might as well watch the game on HDTV if it's the bleachers, but infield grandstand starts to get interesting
d) Giants in the Worlds Series? AHAHAHAHAHA
No, it's not. It's a consequence of the corporate veil and the general unwillingness to pierce it. The veil is considered sacred because it empowers the members of a corporation to take risky, productive steps in the face of possible backlash -- be it legal or financial.
The veil is further justifiable by realizing that corporations encourage sociopathic groupthink, by their very nature... and so their members are (to some degree) excused for doing so. I say "to some degree" because as the felony charges in this case demonstrate, members are not excused for the serious stuff.
Another way to look at it is to state the issue in your terms: the veil is the way that a corporation's members pool their human right to free association. The veil essentially announces to the world "If you wish to associate with any of our number, then you do agree to do so by treating us as collective and unseverable". The law gives force to this agreement by standardization, and this results in efficiency gains all around.
Of course it also results in sociopathic behavior... but that is a cost and it usually compares favorably to the yield.
FATMOUSE + YOU = FATMOUSE
HP burns 11.5 million dollars on shredder oil per year. this settlement means nothing to HP, which remains the poster boy for no ethics in business for spying like Putin.
if this is supposed to be a new economy, how come they still want my old fashioned money?