Oracle Calls HP Out on ''Vindictive'' Lawsuit

News
By Jane McEntegart
published

Oracle CEO Larry Ellison has responded to a lawsuit filed by HP claiming Mark Hurd is breaching his contract by working at the software company.

Oracle only just hired Mark Hurd, but already, the new co-president's former employer is causing trouble for him. Yesterday, Hewlett Packard filed a civil suit against Hurd for allegedly breaching a contract he entered into with HP. HP believes Mark's working for a competitor puts the company's trade secrets in peril and says he signed a number of agreements during his time at HP agreeing to protect those secrets.

In a short and sweet statement, CEO of Oracle, Larry Ellison, branded the lawsuit vindictive and claimed it showed a complete disregard for the ongoing partnership between the two companies.

"Oracle has long viewed HP as an important partner," said Ellison. "By filing this vindictive lawsuit against Oracle and Mark Hurd, the HP board is acting with utter disregard for that partnership, our joint customers, and their own shareholders and employees.  The HP Board is making it virtually impossible for Oracle and HP to continue to cooperate and work together in the IT marketplace."

Jane McEntegart
28 Comments Comment from the forums
  • hellwig
    Larry Ellison just embodies the mega-rich ego-maniacal self-centered lunatic who you just know has his own private island manned by legions of loyal soldiers donned in matching, gaudy, perhaps brightly colored uniforms. He probably has his own salt-water tank filled with sharks with laser beams attached to their heads.

    Sorry, my point is, I have no doubt Oracle (Ellison) hired Hurd for his knowledge of HPs business practices. Why else would they bring in a senior executive embroiled in a sex scandal who stole money from his former employer? The man is poison, and Oracle only hopes it can resist long enough to get enough information from him before casting him aside. Hurd won't last at Oracle any longer than he did at HP, and if I were HP, I'd surely be fighting this. It's not as if HP let him go for invalid or non-existent reasons.
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  • mrecio
    HP: Oracle is our Competitor and we are losing trade secrets!

    Oracle: HP is our partner why would they do this? guess we cant be friends.

    would oracle, if they really were partners, hire HP's former CEO which such a bad history if they didn't think he could provide valuable information about the inner workings of HP or there current plans in the market.

    I think HP has a legitimate civil suit here and Oracle is just trying to look like the victim for the media.
    Reply
  • jomofro39
    He does have a really good point. I had no idea that those two were in bed together. There is even a page on HP's website dedicated to their "alliance". But, I guess Oracle is a little shady, combined with the mess with the Justice Department's contracts being overpriced, to the point that a little fail-safe suit by HP is warranted, as crushing to the partnership as it is, it will definitely ensure that Hurd does not violate any NDAs, or at least that Oracle can't use the information he divulges. This one should be a long, arduous battle in the courts. Curious as to how it will turn out. I've never Hurd of such a mess.
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  • smashley
    Uh, one might argue that Oracle is the offender here, hiring Hurd in the first place. Seems like a sketchy move at best so soon after him resigning. Almost like the whole harassment thing was just a ruse to get out of HP and jump in bed with Oracle.
    Reply
  • ArgleBargle
    The lesson basically is, once you're in the CEO Club, you can do whatever you want with no repercussions. Hurd may get cast aside soon, but doubtless he will have yet another golden parachute, and will be hired within weeks as an executive at another company, to wreak havoc all over again.
    Reply
  • utengineer
    I am no VP, but when excepting my job I had to agree not to work for any of my competitors OR partners for 6 months upon leaving my company for whatever reason. This is typical corporate practice when NDA's are involved. Considering Hurd's experience he brings to the table, I am sure Oracle was prepared to pay whatever penalties are involved in his hiring. The strain in can put on their corporate alliance will be what it is......a money issue.
    Reply
  • madeux
    Larry is no idiot, whether you like him or not. He knew exactly what would happen when he hired Hurd, and he made the decision to move forward. Now, I've never been the richest man alive, and I'm not currently in the top 10, so I'm going to have to trust Larry's judgment on this one.
    Reply
  • rick4937
    The anti-Hurd posters clearly have little business knowledge. Hurd is widely credited, and properly so, for returning HP to relevance. He nearly tripled the stock price during his tenure and managed several key acquisitions that substantially improved HP's competitiveness in key sectors. Did Hurd abuse his expense account? Yes. Do most executives at most large companies? Yes. Did he abuse some women? Yes. Does that at all matter? No. Large corporations are in the business of making money, and Hurd was excellent at it. Firing him, while politically convenient, was a stupid business move. Oracle was wise to grab him.
    Reply
  • Stifle
    mrecioHP: Oracle is our Competitor and we are losing trade secrets!Oracle: HP is our partner why would they do this? guess we cant be friends.would oracle, if they really were partners, hire HP's former CEO which such a bad history if they didn't think he could provide valuable information about the inner workings of HP or there current plans in the market.I think HP has a legitimate civil suit here and Oracle is just trying to look like the victim for the media.
    My thoughts exactly. It sounds as though Oracle found a way to get ahead of HP in the marketplace by hiring Hurd and HP had them beat from the beginning with NDA agreements Hurd signed when he left. The lawsuit seems legit.
    Reply
  • you mean *accepting*
    Reply