Sharp criticism followed, when it turned out that AIG was paying retention bonuses to executives helping exit some of the trades that put the firm in crisis, and paying banks 100 cents on the dollar to settle contracts on risky debt.
It escalated when they tried to take disciplinary action against the employee as other workers protested and blocked all exit gates, preventing senior executives and managers from leaving the factory.
While it isn't unusual for companies to sue departing executives to enforce exit agreements, H-P's suit Tuesday against Mr. Hurd is atypical in that former CEOs are rarely subject to such legal actions, experts said.