Hewlett-Packard agreed to pay $14.5 million to settle a lawsuit brought by California Attorney General Bill Lockyer, whose office accused the company of unfair business practices in its attempts to unmask the source of boardroom leaks.
HP also will implement changes to its corporate governance policies to ensure that future internal investigations are conducted legally.
There was no finding of liability against HP. The settlement includes a injunction and agreement that the California Attorney General will not pursue civil claims against HP or against its current and former directors, officers and employees.
The vast majority of the settlement -- $13.5 million -- will fund state and local investigations into privacy rights and intellectual property violations, Lockyer said in a statement.
"We are pleased to settle this matter with the Attorney General and are committed to ensuring that HP regains its standing as a global leader in corporate ethics and responsibility," said Mark Hurd, HP chairman and chief executive officer in a statement.