The confrontation at Hewlett-Packard started innocently enough. Last January, the online technology site CNET published an article about the long-term strategy at HP, the company ranked No. 11 in the Fortune 500. While the piece was upbeat, it quoted an anonymous HP source and contained information that only could have come from a director. HP’s chairwoman, Patricia Dunn, told another director she wanted to know who it was; she was fed up with ongoing leaks to the media going back to CEO Carly Fiorina’s tumultuous tenure that ended in early 2005. According to an internal HP e-mail, Dunn then took the extraordinary step of authorizing a team of independent electronic-security experts to spy on the January 2006 communications of the other 10 directors—not the records of calls (or e-mails) from HP itself, but the records of phone calls made from personal accounts. That meant calls from the directors’ home and their private cell phones.

Any time a director resigns from a U.S. public corporation, federal law requires the company to disclose it to the SEC in what’s called an 8-K filing. If the director resigned for reasons related to a “disagreement” with the company about “operations, policies or practices,” that, too, is now required. HP reported Perkins’s resignation to the SEC four days after it happened—back in May—but gave no reason for the resignation, instead including only a press release thanking Perkins for his years of service. Perkins has twice challenged that omission in e-mails to the HP board and, he says, he received no response from HP.

This security team pretexted all the directors' home and cellular phone records. Perkins, who was not the leak, rightly freaked out about this methodology and resigned from the HP BoD. It is possible that HP could wind up in trouble with the SEC, FTC, and the local Attorney General.

Update: Catonic points out that Groklaw has chimed in.

Phone-Records Scandal at HP - Newsweek Business