The president of LeapFrog SchoolHouse, the school sales division of the company that makes the popular LeapPad learning device, resigned Dec. 14 after federal investigators questioned whether a $1 million contract awarded to the company stemmed from an improper relationship between a Maryland superintendent and one of its top salespeople.

Bob Lally stepped down in response to what company officials called "an internal investigation under LeapFrog's code of conduct" stemming from a personal relationship between a LeapFrog sales executive, Sienna Owens, and embattled Prince George's County, Md., schools chief Andre Hornsby. ...

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