A letter from a female independent contractor that prompted the board of Hewlett-Packard Co. to initiate a sexual harassment investigation into then CEO Mark Hurd will be unsealed as part of a shareholder lawsuit against HP, a judge in Delaware has ordered.

As we reported on February 18, two HP shareholders have filed separate lawsuits in Delaware and California challenging the board's determination that Hurd had not violated the company's sexual harassment policy. Although the board did demand Hurd's resignation in August, it did so based on irregularities in his expense reports, not sexual harassment. As a result, Hurd was eligible for a "golden parachute" worth an estimated $40 million. The shareholders are challenging the board's decision to pay the severance package -- using shareholder money.

Judge finds letter in sexual harassment scandal already largely public; not protected by attorney-client privilege

The letter in question was sent to Hurd by the lawyer for an independent marketing contractor with whom Hurd was accused of having an improper sexual relationship. As it was from an attorney in an attempt to resolve a legal dispute, it would generally not be admissible in court.

It is rumored that the letter contains statements at least partially exonerating Hurd of illegal sexual harassment but acknowledging the improper sexual relationship. However, Hurd is opposing its public release. Hurd's attorney points out that the letter was clearly marked "confidential," and both Hurd and the contractor say the letter contains "many inaccuracies."

HP also opposes the public release of the letter or any private information underlying its investigation into the alleged sexual harassment.

In a 71-page opinion released yesterday, Delaware Chancery Judge Donald Parsons found that the information contained in the letter is largely already known to the public, and that releasing it would not reveal new information but simply provide more details about established public knowledge. Additionally, he found that, while the letter does contain some "intimate details" about Hurd's private life, it was "not graphic or lurid," which might have weighed on the side of keeping it private.

Judge Parsons ordered the letter to be made public in 10 days. However, Hurd plans to appeal the order, which could delay the letter's release.

Source: Reuters, "Letter tied to Hurd's HP ouster to be unsealed," Tom Hals, March 18, 2011