The H.P. Way

Hewlett-Packard just can't seem to shake last year's corporate spying scandal.

Three CNET News.com reporters have sued the tech powerhouse claiming the Inspector Clouseau-like antics that led to last year's "pretexting" scandal were an invasion of privacy and a violation of California business law.

The lawsuit is the latest fallout from a scandal that riveted the business world after reports emerged that H.P. had spied on its own board members as well as journalists covering the company in an effort to stanch boardroom leaks.

The imbroglio led to the resignation of several H.P. board members, including Silicon Valley icon Tom Perkins, who left after discovering the company's campaign, which featured private investigators trailing reporters on vacation, rifling through trash bins, and impersonating people in order to obtain their phone records, a practice known as pretexting.

CNET reporters Dawn Kawamoto, Stephen Shankland and Tom Krazit—along with several family members who were also allegedly spied on—filed the lawsuit in California Superior Court in San Francisco on Wednesday. The plaintiffs seek unspecified damages.

"Defendants conspired to and intentionally intruded into the plaintiffs solitude and private affairs," the lawsuit alleges.

An H.P. spokesman issued the following statement to CNET.

"As we have said since last fall, HP regrets these events, and we have apologized individually to those who were affected. In an attempt to resolve this matter short of litigation, HP made a substantial settlement offer to the reporters, their family members and a charity of their choice. Unfortunately, rather than respond to the offer, they have decided to sue. HP is disappointed by their decision and will defend itself."

Asked by CNET what kind of damages the plaintiffs were looking for, Kevin Boyle, the reporters' attorney, declined to name a figure.

"The value of the case is going to be worth whatever (the jury) thinks it's worth," he said. "We think the biggest component is going to be punitive damages, which we hope will deter HP and other companies from ever doing this again."

The lawsuit is just the latest in a series of consequences that have stemmed from the scandal.

Last fall, H.P. chief executive Mark Hurd apologized to the reporters during an emotional conference call in which he pledged to rebuild the company's reputation for the highest level of integrity—known throughout the business world as "the H.P. way."

Shortly thereafter, disgraced former H.P. chairwoman Patricia Dunn, who is thought to have orchestrated the spying and is also named in the lawsuit, resigned from the company and joined several others implicated in the scandal for Congressional grilling.

In the wake of the scandal, H.P. agreed to pay $14.5 million to the state of California to help support privacy protection. California state criminal charges against Dunn and others implicated in the spying have been dismissed.

by Sam Gustin