September 20, 2010 - HP and Oracle announced Monday they had settled a lawsuit brought by HP against former CEO Mark Hurd after he joined Oracle as co-president two weeks ago.
Details of the settlement were withheld by the companies but different accounts surfaced regarding the terms. The Associated Press reported Hurd will forfeit approximately $14 million in stock in exchange for joining Oracle. Hurd has already been cleared to receive $12.1 million under the terms of his severance and has already moved to sell $30 million of stock options that came with the package.
Following the settlement, a joint statement from the companies said Hurd would be able to perform his duties at Oracle without having to reveal trade secrets that were questioned in the lawsuit. The companies "are committed to working together to provide exceptional products and services to our customers," said Cathie Lesjack, CFO and interim CEO at HP.
The companies compete directly on many deals, but they also partner extensively, primarily where Oracle software runs on HP's hardware, and share about 140,000 joint customers. Oracle has since entered the hardware market more aggressively with its acquisition of Sun Microsystems for $7.3 billion this year.
Oracle CEO Larry Ellison initially called HP's lawsuit "vindictive" and scolded HP for what he described to be the worst decision since Apple fired CEO Steve jobs, but has apparently relented to move past the dispute.
"Oracle and HP will continue to build and expand a partnership that has already lasted for over 25 years," said Ellison in the joint statement.
Analysts are looking for HP to announce a permanent CEO in coming weeks.