HP’s 12-Year Legal Battle Over Autonomy With Late CEO Mike Lynch Hasn’t Ended Yet
One of the longest legal battles in U.K. history. | Credit: Artem Podrez on Pexels
Key Takeaways
- Hewlett Packard Enterprise Co will continue to pursue the $4 billion damages claim from the late Mike Lynch’s family.
- Mike Lynch was cleared of all US criminal fraud charges in June.
- The British tech tycoon lost a UK civil lawsuit in 2022.
Hewlett Packard Enterprise Co (HP) said it will continue to pursue the $4 billion damages claim from the family of recently deceased British tech tycoon Mike Lynch.
The US tech giant is waiting to find out how much they are owed after winning the UK civil case over the aquisition of Lynch’s Autonomy Corporation.
“It is HPE’s intention to follow the proceedings through to their conclusion,” the company said in a statement Monday.
Lynch, who has always maintained he is innocent, finally emerged victorious from US criminal convictions in June. However, the not-guilty verdict came after one of the most protracted and expensive legal trials in British history.
How Did Lynch vs HP Start?
Lynch was the founder and CEO of Autonomy Corporation, a British software company specializing in enterprise search and information management.
In 2011, HP acquired Autonomy for approximately $11 billion, with the aim of enhancing its software capabilities.
However, the acquisition was catastrophic in every way. Five weeks after the deal was announced, the HP CEO who led the purchase was let go from the company. Shortly after, Lynch left Autonomy, having cemented himself as one of the most successful technology businessmen in the UK.
In November 2012, new management at HP had written off $8.8 billion from Autonomy’s value, claiming “outright misrepresentations” and “serious” accounting improprieties before the deal was made. Thus beginning one of the longest legal battles in UK history.
Lynch Extradited
Following years of legal battles, Autonomy’s chief financial officer, Sushovan Hussain, was found guilty of fraud in 2018 and sentenced to five years in prison.
In 2018, US prosecutors filed a myriad of criminal charges against Lynch, accusing the British tech tycoon of intimidating people who raised concerns, concealing a failing business, and inflating the company’s value with backdated agreements.
After Lynch lost a UK civil case, which HP is currently seeking damages for, the tycoon was extradited to the US to face his charges there.
Lynch was placed under house arrest in California for 13 months until his trial , although this only lasted 12 weeks.
In an interview with The Times , Lynch explained that he wanted to take to the stand himself and show the jury that he was not the “pantomime villain” he was being painted as.
Cleared of All Charges
On June 6, 2024, Lynch was cleared of all US fraud charges that he had battled since 2018.
US prosecutors called several witnesses to the stand, including the former fired head of HP, Leo Apotheker, but could not convince a jury.
Taking the stand himself, Lynch continued to maintain that he had focused on technology and not accounting. His lawyers claimed that HP had failed to properly investigate the deal.
Lynch, who could have faced up to 20 years in prison, also claimed he had distanced himself away from the former chief financial officer.
“I am elated with today’s verdict and grateful to the jury for their attention to the facts over the last 10 weeks,” Lynch said in a statement. “I am looking forward to returning to the UK and getting back to what I love most: my family and innovating in my field.”
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