Racketeering claims against ten former executives and board members were filed late last week. Law firm Wilson Sonsini, along with name partner, Larry Sonsini (also a former Brocade board member) have paid Brocade $9.5 million to ensure exclusion from the recently filed lawsuit. Lots more at Law.com.

-- MDT

Labels: Brocade, Gregory Reyes, Larry Sonsini, racketeering, Wilson Sonsini

The New York Times is reporting on a private settlement reached between HP and several journalists over HP's acquisition of the journalists private phone records. HP, aided an abetted by law firm Wilson Sonsini famously went on the war path against C-suite leaks under the direction of then CEO Patricia Dunn. Enlisting a small army of investigators from all across the country HP was determined to identify and eradicate the source of the troublesome leaks - by any means necessary.

The means ended up being a smorgasborg of high level and low level investigative tasks - from surveillance to pulling trash to the acquisition of phone records belonging to company board members as well as reporters. In the course of what became known as the Kona II investigation HP board member and Silicon Valley royalty, Tom Perkins - a suspected leaker - got wind of the activities. Perkins subsequently resigned from the board, which in a bit of executive gamesmanship, forced HP to file an 8K with the SEC reporting the departure - and the reason behind it.

About that time the proverbial shit hit the fan and the story was splashed across business pages from here to Taipei.

HP has already skated on any meaningful civil or criminal charges (the firm paid a $14.5 million settlement to head off charges in California), but the attention brought by the pretexting fracas led to new Federal legislation closing the legal loophole that had allowed private investigators to use pre-textual techniques to obtain private phone records. While this latest news of a private settlement brings to a close one more aspect of the story five additional lawsuits brought by journalists and their families remain pending. You an be sure we'll bring further happenings on those cases to your attention.

-- MDT

Labels: HP, Patricia Dunn, pretexting, Tom Perkins, Wilson Sonsini

Via an article entitled Bloodsucking Scumbag written by Karen Donovan of the National Law Journal. Lets call this:

Lerach: A Negative View

An interesting blast from the past and definitely a piece for those who view his current travails as comuppance.

And in case you missed it late yesterday, Lerach's statement regarding his guilty plea:

"I have always fought for my clients aggressively and vigorously in order to hold powerful corporations responsible when their actions harmed people. However, I regrettably crossed a line and pushed too far. For my actions, I apologize and accept full responsibility for my conduct."

I should also note that in addition to the $8 million (Ok, $7.8 million) mentioned yesterday as part of the settlement is a straight forfeiture. There is also a $250,000 fine. Most notably, Lerach's settlement in no way obligates him to cooperate with authorities in their investigation

-- MDT

Labels: Bill Lerach, Lerach, Wilson Sonsini

In a move that had been expected for some time, several lawsuits alleging "illegal and reprehensible conduct" have been filed against Hewlett Packard as well as the company's former CEO, Patricia Dunn and Kevin Hunsaker, PH's former ethics chief.

These would be the two company executives most closely associated with the hiring of private investigators, who among other things, used pretextual tricks to obtain private phone records of several individuals who HP suspected of facilitating media leaks of sensitive company information.

Amongst the plaintiffs in the five cases are journalists from the Associated Press and CNET. More on the pending cases via MLive. Loads of background on HP corporate spying fiasco is available via the tags below.

-- MDT

Labels: HP, Kevin Hunsaker, Patricia Dunn, pretexing, Wilson Sonsini

HP violated mandatory disclosure rules when it failed to come clean in company 8Ks about the reason that shareholder Tom Perkins left the board of directors. Perkins, a noted venture capitalist and an old-school Don of Silicon Vally hardly needed the HP board berth to pad his extensive resume.

As you may recall, Perkins left his seat to protest HP's spying on himself, other board members and various journalists.

HP top brass, including former CEO Patricia Dunn believed Perkins to be the source of media leaks that were hampering the company. In response Dunn, HP's general counsel, outside counsel Wilson Sonsini and a cadre of investigators and subcontractors initiated what came to be known as Kona II, an investigation that included surveillance, pulling trash and obtaining phone records under false pretenses.

There are no "teeth" to the SEC's settlement with HP. The company simply double-promises not to violate disclosure rules in the future. No penalty was assessed.

For further background on the HP shenanigans - that is, if you're not totally sick to death of the story - check out the tags below.

-- MDT

Labels: HP, Kona II, Patricia Dunn, pretexing, Wilson Sonsini

Michael Holston will assume the role of vice president and general counsel for HP, which cleaned house after news of Patricia Dunn's Kona 2 investigation exploded into the newspapers. Holston replaces Ann Baskins who departed HP in September in response to the scandal over the technology company's internal leak investigation.

Investigators working on behalf of HP used pretextual tactics (in this case, assumed identities) to access private phone records of HP directors and even journalists, hunting for the source of high level company leaks. These tactices were supposedly vetted by HP's general counsel's office and also run past outside counsel Wilson Sonsini. WS has also been dumped by HP as the company tries to creep out from under the long shadow of its own making.

-- MDT

Labels: HP, Patricia Dunn, pretexting, Wilson Sonsini

Bryan Wagner takes a fall.

This guy is not even 30...a cautionary tale for P.I.s who put saying "yes" to a client above the client's best interest - and their own...

Wagner's actions were undoubtably pursuant to the request and at the direction of someone. And we'll find out the who, because Wagner seems to be cooperating. Federal prosecutors are not going to settle for busting the chops of some subcontractor when he can give them HP top brass and, perhaps, a few names from Wilson Sonsini too.

Check out the typical great collection of links on the story from The Jurist.

-- MDT

Labels: Bryan Wagner, HP, identity theft, pretexting, Wilson Sonsini

This would not be the folks from the Boston-area firm, Security Outsourcing Solutions, that you've read about previously, but rather P.I. Bryan Wagner our of San Francisco.

Wagner has been indicted in California on charges of utilizing the social security number of a journalist to obtain that individual's telephone records. He apparently did so at the direction of HP execs, their legal team or other investigators working on HP's behalf as a part of their internal "Kona 2" investigation to identify the source of HP's persistent high-level media leaks.

Wagner is facing charges of conspiracy and identity theft, which could carry penalties of up to seven years in jail. That California AG's office had previously announced that they were going to go hard on this matter and it looks like they are following through on the threat. It is expected, though, that the Wagner indictment is just bait to catch bigger fix. He is expected to cooperate with authorities.

Read more on the Wagner indictment via the IHT.

-- MDT

Labels: Bryan Wagner, HP, identity theft, Joseph DePante, Patricia Dunn, pretexting, Ronald DeLia, Wilson Sonsini

While Wilson Sonsini may still do some legal work for HP, Larry Sonsini is out as HP's outside counsel, severing a ten year relationship.

Also seeking new opportunities is former HP General Counsel, Ann Baskins. Law.com does their usual bang-up job on digging deep into Baskin's troubling, scandal-ridden last few months with HP. Recommended reading.

-- MDT

Labels: Ann Baskins, HP, Larry Sonsini, pretexting, Wilson Sonsini

Great Law.com article. There is some massive balancing force in the universe that sees Milberg Weiss and Wilson Sonsini (two law firms that have spent more than a fair amount of time on opposing sides of the aisle from one another) both in the legal cross-hairs at the same time.

It is weird the way the world works.

-- MDT

Labels: HP, Melvyn Weiss, Milberg Weiss, Patricia Dunn, Wilson Sonsini