The Hewlett-Packard spying scandal has produced its first shareholder suit, which was filed two months ago by noted plaintiffs' attorney William Lerach.
But the question remains whether the action should be interpreted as stemming from a unique and headline-friendly set of circumstances, or whether it is a product of a new atmosphere of boardroom turmoil, which should, in turn, have directors and officers liability insurers concerned about a new spate of claims.
The Lerach suit was filed in California Superior Court, Santa Clara County, in September, asserting that the Silicon Valley electronics pioneer breached its fiduciary duty through illegal spying and the use of false “pretexts” to obtain directors' phone records in order to discover the source of leaks to reports about confidential board business.
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