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Slideshow Lawsuit over HP ex-CEO Hurd payout dismissed Tweet Share this Email Print Related News Executive who criticized Oracle president quits Thu, Jun 21 2012 Barnes & Noble's Riggio settles shareholder suit Wed, Jun 13 2012 New York City files derivative suit versus Wal-Mart Mon, Jun 11 2012 HP says Oracle violated contract, seeks billions Mon, Jun 4 2012 Oracle suffers major setback in Google case Thu, May 31 2012 Analysis & Opinion New SCOTUS brief: Keep international human rights cases in U.S. courts AIG (mostly) survives Countrywide timeliness defense in MBS case Related Topics Tech » Mark Hurd, chairman, CEO and president of HP speaks at the Fortune Brainstorm Tech conference in Pasadena, California, in this July 24, 2009 file photo. Hurd resigned on August 6, 2010 following an investigation of sexual harassment, the world's top computer maker said. Credit: Reuters/Fred Prouser/Files WILMINGTON, Delaware | Fri Jun 22, 2012 11:37am EDT WILMINGTON, Delaware (Reuters) - A shareholder lawsuit seeking to hold the board of Hewlett Packard Co responsible for approving Mark Hurd's $40 million severance after he abruptly quit as chief executive was dismissed by a Delaware court. Hurd, now a president at rival Oracle Corp, resigned in August 2010 following allegations of sexual harassment against independent HP contractor Jodie Fisher. An internal HP investigation had cleared Hurd of harassment, but found he had filed inaccurate expense reports. A shareholder, Lawrence Zucker, sued HP's directors, claiming they wasted company money by agreeing to such a large severance when they could have fired Hurd for cause and paid him nothing. Judge Donald Parsons of the Delaware Chancery Court, however, wrote that the directors acted in good faith in approving the payment, though the amount "may appear extremely rich or altogether distasteful to some." In his 30-page opinion issued on Thursday, Parsons said denying severance to Hurd could have hurt HP by making it more difficult to find a replacement. In addition, Parsons said that the severance could have been considered payment for past service and he also noted that Hurd helped with the transition to a new leader and agreed to a period of confidentiality that covered his move to Oracle. Parsons also dismissed a claim accusing HP of poor succession planning. HP and attorneys for the plaintiff did not immediately reply to a request for comment. The lawsuit was delayed by a separate legal fight over a letter sent to Hurd by Gloria Allred, a high-profile California attorney, on behalf of Fisher. Delaware's Supreme Court ruled in December that the letter should be unsealed though it contained embarrassing details about Hurd's behavior. The case is Lawrence Zucker v Marc L. Andreessen et al, Delaware Court of Chancery, No. 6014. (Reporting By Tom Hals in Wilmington, Del.; Editing by Tim Dobbyn) Tech Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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