According to the Associated Press, four other defendants in the case charged with felonies have also been offered deals if they agree to plead guilty to a lesser misdemeanor charge.
Stephen Naratil, a lawyer for private investigator Bryan Wagner, one of the defendants, told the AP the Attorney General's office offered to drop all four felony charges against his client in exchange for a misdemeanor guilty plea.
Naratil also said that Deputy Attorney General Robert Morgester told him the other four defendants in the case were offered the same deal. Naratil could not be reached for comment.
A spokesman for the California State A.G.'s office said it doesn't comment on settlement talks or plea negotiations. The other four defendants in the case are Dunn, former HP ethics officer Kevin Hunsaker and other investigators Ronald DeLia and Matthew DePante.
The scandal, which involved HP hiring investigators to look into leaks of private board room discussions, exploded on the scene last year when it was revealed the investigators used pretexting to probe the phone records of reporters as well as HP board members and certain employees.