Facts

Hewlett-Packard Company (HPC) initiated the "2012 Workforce Reduction Plan" to reduce the overall company workforce and implemented the initiative over a period of years. In November 2015, HPC split into two companies HP Inc. (HPI) and Hewlett Packard Enterprise Company (HPE). Meg Whitman served as the Chair of the Board of Director for HP Inc. until July 26, 2017, and as the CEO for HPE until February 1, 2018, and also served on the board of HPE. On August 18, 2016, former employees Donna J. Forsyth, Arun Vatturi, Dan Weiland, Shafiq Rahman, and Kevin Alviso, on behalf of themselves and other persons similarly situated, brought a putative class action against HPI and HPE, alleging age discrimination under the U.S. Age Discrimination in Employment Act and California laws. There were two classes in the case: The HPE California Class and the HPC/HPI California Class. The HPE California Class included: All individuals who had their employment terminated by HPE in California pursuant to a companywide workforce reduction plan between November 1, 2015, and February 15, 2022, and who were 40 years or older at the time of such termination. As provided in the operative First Amended Complaint, excluded from the HPE California Class are: (a) individuals who signed a Waiver and General Release Agreement; and (b) individuals who signed an Agreement to Arbitrate Claims. In addition, any individuals who previously signed agreements that waived and released the claims asserted in this action were excluded. The HPC and HPI California Class included: All individuals who had their employment terminated by HPI in California pursuant to a workforce reduction plan between August 18, 2012, and February 15, 2022, and who were 40 years or older at the time of such termination. As provided in the operative Fourth Amended Complaint, excluded from the HP Co./HP Inc. California Class are: (a) individuals who signed a Waiver and General Release Agreement; and (b) individuals who signed an Agreement to Arbitrate Claims. In addition, any individuals who previously signed agreements that waived and released the claims asserted in this action are excluded from the HP Co./HP Inc. California Class.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged that defendants from 2012 to 2020, under the direction of Meg Whitman, implemented a company-wide multiyear restructuring initiative designed called the "Workforce Restructuring Initiative" to make the company younger by replacing thousands of existing, older workers with new, younger employees before, during, and after HPC split into two companies. Plaintiffs contended that this initiative resulted in continued discriminatory employment practices by preventing the company's management from retaining competent older employees or rehiring any employees discharged under the policy.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions.

Settlement Discussions

The parties participated in two day-long mediation sessions with mediators Mark S. Rudy and the Honorable Daniel J. Buckley (Retired) on October 14, 2022, and November 16, 2022, before ultimately reaching a settlement on the issue.

Result

The parties reached an agreement wherein the defendants admitted no wrongdoing or liability but agreed to pay $18 million to settle class members' claims.