HP made announcements that it is reshuffling its leadership. Announcing the departure of Chairman Dunn in January to be replaced by CEO Mark Hurd.

However, this announcement was followed by California Attorney General Bill Lockyer’s statement, “We currently have sufficient evidence to indict people both within Hewlett-Packard as well as contractors on the outside.” This statement was made on the “News Hour with Jim Lehrer.”

Meanwhile George Keyworth III resigned today and acknowledged that he was sharing information with reporters. He states that he had company approval to share the information raising even more questions.

It remains to be seen where this scandal will shake out. Investors are betting on a resolution that doesn’t harm the company. The stock price has been climbing since this latest aspect of the scandal broke.

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