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Lessens for Counsel After Hewlett-Packard
Indictments and resignations following an internal investigation are not necessarily surprising. In the case of the Hewlett-Packard ('HP') investigation, however, it's the investigators who are in dire straits. In the months since HP publicly announced that it had conducted an internal investigation into news leaks by corporate directors, its Chairman and General Counsel have resigned, criminal charges have been filed against those involved in the investigation, and one person has pled guilty. HP exemplifies the pitfalls and problems that can result from an internal investigation itself, for both the company and its counsel. As one Congressman asked: 'Where were the lawyers? There were red flags waving all over the place,' but 'none of the lawyers stepped up to their responsibilities.' Hewlett-Packard's Pretexting Scandal Before the H. Subcomm. on Oversight and Investigations, 109th Cong. (2006) (statement of Rep. John D. Dingell).
HP serves as an example of how not to conduct an internal investigation. The two overarching lessons it offers are that investigations are jeopardized when not done for a valid purpose ' which means, among other things, that they must not be driven by corporate politics ' and when they do not follow a valid process. If the purpose or process of the investigation is compromised, the consequences for a corporation and counsel may be worse than doing nothing at all.
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