Hewlett Packard (HP) CEO Mark Hurd has resigned amid claims of sexual harassment.

Hurd, who took on the role in 2005, was cleared of sexual harassment by Interim CEO Cathy Lesjak according to an internal memo. But he failed to disclose a 'close personal relationship' with an HP contractor, CNN Money reported.

The internal memo, obtained by Engadget, stated that the relationship was a conflict of interest, that Hurd didn't maintain proper expense reports and misused company assets.

According to Lesjak, Hurd paid the contractor fees for services, but questions were raised as to whether the services were actually delivered.

Hurd engineered HP's comeback, resulting in the company becoming the largest tech company by total revenue, and will also take home a reported $40-million severance package.