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ard member (now known to be George Keyworth, who resigned from the board
this week) involved unethical and possibly illegal activities by private investigators hired by HP. The
investigator fuel dispenser s used sub-contractors who engaged in “pretexting� the use of false pretences to obtain
personal information—in this case, the telephone records of board members and nine journalists.
Although the use of pretexting to obtain financial data is expressly forbidden by federal law, there is
some debate about whether pretexting to gain telephone records is illegal. Wilson Sonsini, HP s law firm,
initially saw no problem with how HP was conducting the inquiry (see article). But on September 12th Bill
Lockyer, California s attorney general, said he had enough evidence to bring criminal charges against
people at HP. A federal investigation is also under way. For her part, Ms Dunn denies approving the use
of pretexting, or any advance knowledge of it. It seems unlikely that if there were any conclusive
evidence to the contrary, Ms Dunn would have been able to remain chairman for another day, let alone
until January, says Jill Fisch of Fordham Law School.
Ms Dunn s allies say she has been made a scapegoat by a board that backed her leak investigations, but
then failed to stand behind her this week. They also question the central role played by Larry Sonsini in
the two days of deliberations that ended with Ms Dunn losing her chair, though not—f fuel dispenser or now—her place
on the board. The nature of the legal advice given by his firm is likely to be fiercely scrutinised in the
inquiries and trials that lie ahead. Surely, if HP s board needed a lawyer this week, it should have found
someone independent, says one critic.
Ms Dunn won many admirers among corporate-governance reformers for her efforts to improve HP s
famously dysfunctional board. She encouraged more open, honest discussion, replacing some directors
who favoured corporate America s traditional always-back-the-chief-executive clubbishness. Previously,
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