While much of the attention may focus on the original letter written by Gloria Allred to Mark Hurd claiming a pattern of sexual harassment of the marketing contractor Jodie Fisher, the fact remains that he was fully exonerated of those allegations by an internal Hewlett-Packard investigation conducted by the law firm of Covington & Burling on behalf of HP’s board of directors.

In fact, what got Hurd ousted from his job as HP’s CEO on Aug. 6, 2010, were questions related to his expense reports.

So what do they show?

AllThingsD has obtained some background notes that were prepared in connection with the so-called Covington Report — which a Delaware judge has ruled will remain under seal — delivered to HP’s board during the summer of 2010. The one page of notes goes into some detail about the nature of the four of Hurd’s expense reports that specifically name Fisher as having been in attendance.

This is a key detail because HP’s official reason, as explained by then general counsel Michael Holston on Aug. 6, 2010, was that Hurd’s expense reports were prepared in a way that “had the effect of concealing Mark’s personal relationship with the contractor.”

How might Hurd have arguably used an expense report in this way? By leaving her name off of reports claiming expenses for certain dinners.

But here are four examples of expense reports where Fisher was specifically named. By way of explanation, mentions of “Fimbres” refer to Hurd’s assistant Caprice Fimbres, who had hired Fisher in the first place.

A third person is listed as being in attendance on three of the four occasions. In one instance, it is Hurd’s assistant Fimbres, who arranged the dinners — but might not, in fact, have attended.

In another, it is Denis Lynch, Hurd’s security guard, who also might have been nearby but not at the actual dinner.

In another, it is John Spires, but it is unclear exactly who he is. (Note: The expense note could be referencing John Spiers — spelled differently — who was CTO and founder of LeftHand Networks, which was sold to HP in 2008; he is now CEO and founder of NexGen Storage.)

September  12,  2007 — Fimbres later seeks reimbursement for “Dinner with HP Host for CEO Events” for the night of September 12. Dinner was billed to Sullivan’s and the listed attendees are Hurd and Fisher. Total reimbursed amount is $99.86.

October 26, 2007 – Fimbres later seeks reimbursement for dinner at the hotel the night of Oct. 26 in the amount of $319.47. The listed attendees are Hurd, Fisher and Denis Lynch (HP employee).

July 30, 2008 — An expense report filed by Caprice Fimbres shows a charge for “dinner with three people” – Fimbres, Hurd and Fisher — in midtown Tokyo for $326.50.

August 3, 2009 – A Fimbres expense report shows a $347.42 charge for dinner at W Steak in Beverly Hills. Listed attendees are Hurd, Fisher and John Spires. Stated business purpose is “Dinner while in Los Angeles with HP Customer Roundtable Host,” and there is the following expense comment: “High Cost restaurant although didn’t order that much.”

The first meeting mentioned in this group would appear to coincide with a meeting in Denver described in the Allred letter. Fisher, as Allred tells it, was being considered for a job, but the meeting “felt more like a date.”

HP has never disclosed the detailed accounts of the problems with Hurd’s expense reports that led to his resignation, and probably never will. Hurd was, after all, two CEOs ago now, and HP obviously has other priorities.

And Hurd is now co-president at Oracle, HP’s bitter rival.

But these details, if nothing else, raise some additional questions about the circumstances that led HP’s board to conclude that it had lost its trust in Hurd.

While it makes sense that new CEO Meg Whitman probably wants some fresh blood in the legal office, the move comes at a delicate time legally for HP, as the company is heading into a trial with Oracle over the Itanium affair, not to mention routine shareholder lawsuits stemming from its $11.7 billion acquisition of Autonomy.

While a search is underway to replace Holston, HP said, David Healy, a partner in the Mergers & Acquisition Group at Fenwick & West, will serve in the interim as HP’s general counsel. Healy advised HP on its acquisition of Vertica and the deal to sell its video collaboration assets to Polycom.

Holston is former federal prosecutor who had been a partner at the law firm of Morgan Lewis when then-CEO Mark Hurd brought him in to investigate the messy pretexting scandal that rocked HP in 2006. (Here’s a transcript of Holston in a press conference explaining the firm’s work from September of that year.) In the book on that scandal, Anthony Bianco’s, “The Big Lie” Holston is portrayed as having saved Hurd from having to resign amid the scandal that hit when he was only a year on the job.

A profile of Holston by Fortune’s Adam Lashinsky, described him as Hurd’s “consigliere,” who ultimately had to turn against him when Hurd’s troubles involving a marketing contractor and expense reports led him to resign last year.

HP’s statement is below.

Michael J. Holston to Leave HP

PALO ALTO, CA–(Marketwire -12/12/11)- HP today announced that Michael J. Holston, executive vice president and general counsel, will leave the company to pursue other opportunities.

Prior to his joining HP, Holston supported the company as external counsel for more than 10 years on a variety of litigation and regulatory matters.

“Mike has been an exceptional leader at HP and a great contributor to the company’s mission,” said Meg Whitman, HP president and chief executive officer. “The entire company wishes him well in his future endeavors.”

HP also announced that David W. Healy, partner and co-chair, Mergers & Acquisition Group, Fenwick & West LLP, will act as HP’s general counsel on an interim basis. Healy represented HP on its recent acquisition of Vertica and its agreement to sell its Video Collaboration business unit to Polycom. Healy will oversee all legal activities during the interim period.

The company further announced that a formal search is underway for a replacement. Candidates from both inside and outside the company will be considered.

Airbnb, the San Francisco online vacation rentals start-up, said it has hired a key former Yahoo lawyer, Belinda Johnson, as its new general counsel.

The legal issues at Airbnb are both interesting and challenging, all around the new arena of global sharing or, as the company calls it, “collaborative consumption.”

Johnson is one of several recent major hires by Airbnb, which has been adding more seasoned execs to its team of late. Other recent key Airbnb hires include Monroe Labouisse as head of trust and safety and customer service, and Vivek Wagle as head of content.

Johnson left Yahoo several months ago as its deputy general counsel, after a long tenure there working on a wide variety of issues.

Among other things, she oversaw legal strategy for Yahoo’s global products, and worked on deals like its search and advertising alliance with Microsoft. Johnson came to Yahoo from its Web 1.0 acquisition of Broadcast.com, where she had served as general counsel.

She attended both college and law school at the University of Texas.

In a Cisco blog post, the company’s general counsel, Mark Chandler, accused HP of overzealously lawyering up to try to stop former HP employees from going to work for Cisco. The fear is that those former employees will share HP’s confidential information to Cisco’s benefit. “Trade secrets are protected by intellectual property laws, not by non-compete agreements and vague theories that a new job would ‘inevitably’ cause an employee to use trade secrets of his or her former employer,” Chandler helpfully reminded HP’s legal team.

Courts in California have generally held the kind of noncompete agreement that would prevent someone leaving HP for Cisco, or vice versa, to be unenforceable. But one of the people in question used to work for HP in Texas, and moved to California for the Cisco job. HP lawyers, Chandler says, swooped into a courtroom in Texas hours before a related hearing in California (the point being that the court that hears the case first is the one that tends to decide the case).

Chandler doesn’t name the employees involved, but that Texas-to-California move sounds an awful lot like the case of Paul Perez, the former CTO of HP’s StorageWorks, who resigned earlier this month for a job at Cisco; John Marsh, at the Ohio law firm of Hahn Loeser, writes about the case here.

I asked HP for a comment on this, and they haven’t gotten back to me. However, HP is not the only one with aggressive lawyers trying to enforce noncompetes. A federal appeals court recently ruled in favor of HP and an executive it had hired earlier this year from IBM. Giovanni “John” Visentin, who had been a general manager, quit his job at IBM in January and said he was going to HP, but offered to stay on for a transitional period. IBM sued him the next day, and asked the court for an injunction that would have prevented him from taking the job. The trial judge and the appeals court both ruled that IBM’s aggressive behavior made the “emergency” its lawyers said existed worse by its refusal to even talk to the employee.

Chandler closes his post with a promise that the company “will apply California’s rule in favor of employee mobility nationwide,” which is a comfort should you be mulling a job offer from Cisco and work at a rival outfit.

And though the circumstances are different, Cisco is not without its own history of over-aggressive lawyers, as in the infamous case of Peter Adekeye, a former Cisco employee who started his own company servicing Cisco gear; Ars Technica covered the case here. Having filed an antitrust suit against Cisco in the U.S., Adekeye wound up arrested and detained in a Canadian jail. A judge there finally let him out, saying that the only “reasonable inference I can draw from the facts is that the criminal process was used to pressure the applicant (unsuccessfully) into abandoning his antitrust lawsuit against Cisco.”

When it comes to ex-employees, lawyers tend to get really tough.

Update: Like I said, the Adekeye case is different circumstances, and as a Cisco spokesman points out in the comments below, Adekeye is under indictment; though it’s been described as a “ridiculous” case, you sure can’t beat it for weird legal twists and turns.

It seems Cameron and Tyler Winklevoss, the Don Quixote twins of the digital age, have tilted at yet another legal windmill unsuccessfully.

So now, after losing another court challenge to overturn a previous court challenge, they’ll have to settle for $65 million.

Actually, $100 million, which is how much shares in Facebook have appreciated since the pair and also Divya Narendra settled with the social networking giant.

Said the ruling from the U.S. Circuit of Appeals for the Ninth Circuit, in part:

The Winklevosses are not the first parties bested by a competitor who then seek to gain through litigation what they were unable to achieve in the marketplace. And the courts might have obliged, had the Winklevosses not settled their dispute and signed a release of all claims against Facebook. With the help of a team of lawyers and a financial advisor, they made a deal that appears quite favorable in light of recent market activity. For whatever reason, they now want to back out. Like the district court, we see no basis for allowing them to do so. At some point, litigation must come to an end. That point has now been reached.

The end? Say it ain’t so! BoomTown, for one, will miss those big lugs.

Not so much Facebook co-founder and CEO Mark Zuckerberg, especially since the pair allege the tech wunderkind stole the idea for the start-up while a student at Harvard University.

After much legal mishegas, they got $20 million and 1.25 million shares at a price of $8.88 each.

And that’s more than enough, said court to the the Winklevii–it’s their eternal nickname in Silicon Valley now–and they can’t back out of a settlement they made in 2004.

As for the specifics, the three-judge panel struck down every Winklevoss argument:

- They said the terms of the Facebook deal introduced after mediation were typical.

- They said Winklevii should have been sophisticated enough to understand valuation.

- They said Winklevii couldn’t use the sealed mediation settlement documents to argue their case.

It’s true, but it’s also sad to see it all over, since all the litigiousness between Zuckerberg and the Olympic rowing brothers has been so dramatic that it was the subject of the almost Oscar-winning movie, “The Social Network.”

But maybe they can go to the Supreme Court! One can dream!

And with their latest loss and all the Google machinating against Facebook, who’s up for a sequel: “Geek Wars: The Empire and the Vii Strike Back.”

In a statement, Colin Stretch, deputy general counsel of Facebook said: “We appreciate the Ninth Circuit’s careful consideration of this case and are pleased the court has ruled in Facebook’s favor.”

Here’s the full ruling:

08-16745

The release of funds follows a number of denial-of-service attacks earlier this week that were aimed at the document-leaking site’s providers. Most of the providers are now refusing to work with WikiLeaks after the U.S. government accused it of being in possession of documents that were provided in violation of U.S. law.

Yesterday, WikiLeak’s founder Julian Assange was arrested and denied bail in London. He’s accused of sexual misconduct in Sweden.

While PayPal is releasing the residual funds to WikiLeaks, it is not reinstating the ability for it to receive donations.

PayPal was caught up in a brief media storm this morning, after PayPal’s VP of Platform Osama Bedier gave the impression at LeWeb in Paris that PayPal had cut off access to WikiLeaks because of direct pressure by the U.S. government.

PayPal now wants to set the record straight, and says that it reviewed its policies regarding WikiLeaks after the U.S. Department of State publicized a letter stating that WikiLeaks may be in possession of documents that were provided in violation of U.S. law. The letter was published, and not sent to PayPal directly.

“PayPal was not contacted by any government organization in the U.S. or abroad. We restricted the account based on our Acceptable Use Policy review,” writes PayPal’s General Counsel John Muller. “Ultimately, our difficult decision was based on a belief that the WikiLeaks website was encouraging sources to release classified material, which is likely a violation of law by the source.”

Further, the company disclosed that twice before–in 2008 and 2009–PayPal reviewed and restricted the account associated with WikiLeaks “for reasons unrelated to our Acceptable Use Policy. As soon as proper information was received from the account holder, the restrictions were lifted.”

PayPal has been one of many providers that have been the victim of computer attacks, where servers were inundated with traffic. A spokesperson told us that it mostly affected the company’s blog site, and did not directly affect its payments services.

Other affected companies include MasterCard and Swiss bank PostFinance, The Wall Street Journal reports. No one is yet claiming responsibility for the attacks, but some say they are being organized by the ad hoc “Operation Payback.”

Rob Glaser is stepping down as CEO of Real Networks, the company he founded in 1994. Sources say the move was instigated by his own board, but that he cooperated with the decision and was involved in the transition.

Glaser will be replaced by Robert Kimball, a well-liked executive who most recently served as general counsel and executive vice president of corporate development at RealNetworks (RNWK).

Glaser, who will remain chairman of the Seattle-based Internet company, owns 38.4 percent of Real’s shares, making him by far the largest investor.

His move follows other significant news at Real: Last week, a federal judge dismissed its claims against Hollywood studios in the RealDVD case.

A few days earlier, COO John Giamatteo said that he would step down; the company announced that news yesterday afternoon.

But it is Glaser’s departure that is most important, given that he has been an innovative, pioneering and high-profile Internet leader for so long. Nevertheless, he eventually had to answer for problems with performance.

In fact, Glaser and the board had been talking for some time about making these changes, although it came much more suddenly than Glaser preferred, according to several sources. He had wanted to do a search for a new CEO before he left and make the shift less abrupt.

But the board–with the message coming from director Jonathan Klein, co-founder and CEO of Getty Images–felt a quicker change was needed.

“It’s a typical case of a founder and Internet visionary who can’t convert it to the bottom line. There was a great deal of admiration and respect for Rob, which delayed the decision, but eventually you can’t ignore the results,” says a person familiar with the company. “This move was a long time postponed, because he always had another good idea. But you have a staff whose options are all underwater, and the conversion of gross into net profit was not happening.”

It’s unclear when Glaser’s board informed him of the decision, but sources say that after processing the news, Glaser cooperated with and helped in the transition. He represented the company in a series of meetings at last week’s Consumer Electronics Show without letting on that he was on his way out.

He did, however, post an untypically melancholy message on Twitter yesterday:

Some Real employees and investors have had grievances with the company’s founder for years. A long string of former Real employees, for example, describe Glaser as a cantankerous boss, and Real’s stock price has withered since 2006, when it nearly broke the $12 mark.

The stock is now trading below $4.

And while Real was a genuine pioneer in Web video software and an early player in Web music services–the company was originally called Progressive Networks after Glaser’s political bent–it has been idling for many years.

For a while, for example, it was investing time and money in Web-based “casual games” and had filed to spin off that unit in 2008. But those plans were iced by the recession.

Meanwhile, RealNetworks split its Rhapsody music service into a joint venture with Viacom (VIA) unit MTV, but that service has also stalled, and the two partners have been trying to renegotiate the terms of their partnership.

Real’s crowning achievement of the past few years: The whopping $761 million antitrust settlement it won in 2005 from Microsoft (MSFT), Glaser’s former employer.

Here’s Glaser’s memo to his staff, followed by a note from Robert Kimball, and, finally, the company’s press release.

From: Rob Glaser
Sent: Wednesday, January 13, 2010 1:35 PM
To: All RealNetworks Employees
Subject: Important Personal News

Team,

Today we’re announcing something that I’ve been thinking about for a long time. Nearly 16 years after founding RealNetworks in 1994, I’ve decided to step aside from day to day operations. Accordingly, we’re announcing today that I am relinquishing my CEO job and will focus on my role as Chairman of Real’s board.

A decision of this magnitude produces a complex bundle of feelings. First, profound gratitude for the amazing colleagues I’ve had the opportunity to work with during a chapter that has turned out to be a third of my life. I am incredibly proud of the creativity, persistence, and commitment to excellence that our teams around the world bring to the table every day.

Second, deep appreciation for the billions (yes, billions!) of consumers that use or have used our products, the hundreds of millions of consumers that use our products every year, and the tens of millions of consumers that use our products and services every month. I am also grateful for the trust placed in us by our fantastic carrier and other distribution partners. Very few companies get to have the global reach and impact that we do.

Third, great confidence in the team that will be running the company day-to-day. As we kick off a search for my permanent successor, Real will be led by Bob Kimball as Acting CEO. Bob is one of the most passionate, hard-charging, and lucid executives I’ve ever had an opportunity to work with, and given his decade of leadership at Real, I am confident that the company won’t skip a beat.

Fourth, the bittersweet feelings that come from closing the book on a 16 year labor of love, emphasis on both labor and love. I feel very fortunate that as Chairman I will still get to carry the torch for everything that has made and will continue to make our company great.  And with 2 small children and a third on the way, I feel very lucky that the rhythm of my life can now change, at least for a time, to allow our family to do some things that might not otherwise have been possible. I also look forward to spending more time on civic and other projects outside of Real.

While there’s never an ideal time to make a change like this, this is as good a time as any. We’ve weathered the brunt of the Great Recession and have done what we said we wanted to do, which was to keep our core solid while also building for the future. We’ve also undertaken an extremely rigorous strategy review and have a very exciting road map for the future that you’ll hear about in the days and weeks ahead. And the start of a new decade is a good time, poetically, to pass the baton.

Thanks again for everything, and I hope to see all of you soon.

Rob

From: Robert Kimball
Sent: Wednesday, January 13, 2010 1:07 PM
To: Real@real.com
Subject: Important News

Dear Team,

Rob Glaser, our founder, has resigned as CEO effective today. Rob is sending out a separate note discussing his decision. While Rob will no longer have an operating role, he will continue to serve as Chairman of the Board. We look forward to continuing to work with Rob and I want to thank him for making RealNetworks what it is today and leaving us with a strong foundation upon which to build.

The Board has asked me to assume Rob’s executive responsibilities and has appointed me President and acting CEO. The Board of Directors will consider candidates for the permanent CEO role in the coming months. The senior executive team is galvanized and committed to making RealNetworks a company where customers love our products, employees are excited about being here, and we create value for our shareholders. We want RealNetworks to be a more focused, faster growing and profitable company. We are going to simplify the way we do business, empower employees to do their jobs, and hold people accountable for their results. I look forward to working with all of you to transform RealNetworks as part of this next chapter.

As part of transforming RealNetworks, I am personally committed to providing you with candid, clear and frequent communication so you know where we stand and where we want to go. In the coming weeks, we will be sharing with you changes in the way we operate and organize our business. And we want you to talk to us. Tell us when we are succeeding and when we are failing to make the changes necessary to transform. We plan to hit the ground running and we will need your help and input to succeed.

As you learned yesterday, John Giamatteo announced that he will be leaving in April to pursue another opportunity. John has built a great team here are Real and is completely supportive of the executive team going forward and will be working closely with all of us to ensure a smooth transition. Finally, I want to thank all of you for your contributions to RealNetworks. Our employees are our greatest asset and I humbly ask for your support and commitment to build our company into the great company we all know it can be.

Best to all,

Bob

REALNETWORKS’ FOUNDER ROB GLASER STEPS DOWN AS CEO

Company appoints Robert Kimball President and Acting CEO

SEATTLE–January 13, 2010 Digital entertainment services company RealNetworks, Inc., (Nasdaq: RNWK) announced today that founder Rob Glaser has stepped down as CEO. He will remain chairman of the board of directors of RealNetworks. The company also announced that its board of directors has appointed Robert Kimball president and acting chief executive officer. The board also appointed Mr. Kimball to the board of directors.

“After nearly 16 years, I’ve decided it’s time for me to step away from day-to-day operations,” said Glaser. “I’m grateful to all of our stakeholders–customers, partners, shareholders, and most of all, employees–for the support and commitment they’ve given to RealNetworks. I remain committed to the company and look forward to continuing to serve in my capacity as board chairman.”

In February 1994, Mr. Glaser founded what was then known as Progressive Networks, a pioneer in the field of digital audio and video technology for the Internet. Under his leadership, Real has grown into a multinational company, providing digital entertainment products and services to hundreds of millions of consumers around the world.

“Few people have changed an industry and created a unique experience for billions of people,” said Jonathan Klein, a board member of RealNetworks and the co-founder and CEO of Getty Images. “Rob has changed the face of digital entertainment with RealNetworks’ streaming media products. At the same time Rob has had a profound impact on politics and philanthropy. I’m sure he will continue to do this extraordinary work as well as spending time with his wife and young children. We are grateful for all he has done for the company, the industry and employees, and are pleased that he will continue to serve on the board.”

Bob Kimball joined the company in 1999 and has been a member of the senior executive team since 2003. He most recently served as general counsel and executive vice president of corporate development at Real. “In the decade he’s been at Real, Bob has proven to be an outstanding business executive and leader, and under his leadership the company won’t skip a beat,” said Mr. Glaser. “Our board has great confidence in Bob, and he will be a candidate for the permanent CEO position as part of a formal search process that will begin soon.”

“I look forward to the opportunity ahead,” said Mr. Kimball. “Real has a great team in place, a strong financial position, close customer relationships and fantastic products. We plan to transform Real into a more focused and more profitable company that delivers value to our shareholders.”

[Peter Kafka contributed to this report.]

“We’re extremely pleased to have Doug join the Intel team,” said Intel CEO Paul Otellini. “His breadth of experience and legal expertise combined with his background in government are an outstanding fit for us.”

Melamed’s appointment must be quite a relief for Otellini and Intel, which, as I’ve noted here before, is grappling with some of the most important legal issues the company has ever faced.