Hewlett-Packard (NYSE: HPQ) is seeking over $4 billion in damages from the co-founder of Autonomy, Mike Lynch, accusing him of orchestrating a fraud that inflated the British software firm’s value before its acquisition.
HP’s acquisition of Autonomy in 2011 for $11.1 billion was touted as one of the UK’s most significant tech deals. However, the partnership soured as HP wrote down Autonomy’s value by $8.8 billion a year later, alleging financial irregularities. The lawsuit also targets Autonomy’s former chief financial officer, Sushovan Hussain.
The case, marking one of the English legal system’s longest civil trials, saw HP substantially winning in 2022, although the damages awarded were set to be less than the $5 billion initially claimed.
Mike Lynch, who was often compared to Bill Gates for his tech prowess, was extradited to the United States facing criminal charges related to the deal, with his trial scheduled to begin in March. Lynch denies all allegations of wrongdoing, with his legal team arguing that HP’s acquisition price reflected Autonomy’s unique technology and strategic importance, suggesting no real loss was incurred.
Lynch is planning to appeal the 2022 verdict, pending the determination of damages. Meanwhile, Sushovan Hussain, who has been convicted of fraud in the US and is serving a five-year sentence, aligns with Lynch’s defense.
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