HP sues Hurd over Oracle move

Hewlett-Packard is suing former chief executive Mark Hurd for taking a job as co-president and board member of HP rival and software giant Oracle.

HP announced the lawsuit Tuesday, one day after Oracle chief executive and co-founder Larry Ellison announced Hurd's hiring as co-president. Hurd resigned from HP earlier this month after an internal sexual harassment probe found he had violated the firm's standards of business conduct in relation to former actress and HP contractor Jodie Fisher.

“Mark Hurd agreed to and signed agreements designed to protect HP's trade secrets and confidential information. HP intends to enforce those agreements,” the company said in a statement.

According to the complaint filed in California Superior Court (Santa Clara County), as part of his severance package, Hurd agreed to protect HP's trade secrets and confidential business practices in exchange for "millions of dollars in cash, stock and stock options." Hurd's total severance package from HP could reportedly top $40 million. HP said Hurd could not work for Oracle without disclosing those secrets.

"In his new positions, Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing HP’s trade secrets and confidential information to others,” the complaint states.

Oracle recently purchased the hardware maker Sun Microsystems, putting it in direct competition with HP in the market for servers and integrated information technology services. Oracle did not immediately respond to a request for comment.