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HPE has reaffirmed its commitment to pursuing a $4 billion civil lawsuit against the estate of Mike Lynch, despite Lynch’s recent death in a tragic yacht accident.
The lawsuit stems from HPE’s $11.7 billion acquisition of Autonomy, the UK software company Lynch founded, which later resulted in a $8.8 billion write-down.
Details of the $4bn Civil Suit and the Autonomy Saga
According to a Financial Times report, CEO Antonio Neri emphasized that the lawsuit was in the “best interest of shareholders” and that the acquittal of Lynch on U.S. fraud charges did not affect the company’s ongoing legal battle.
He further acknowledged the difficulty of such decisions but highlighted the responsibility to address the alleged wrongdoing despite the tragic circumstances surrounding Lynch’s death.
“We were watching the ship behind us, then after the storm it was just gone”
“The boat was missing” – eyewitness Captain on scene
“All dying within a 48hour period from freak accidents”
The story of Mike Lynchs yacht sinking gets stranger & stranger with senior lawyers linked… pic.twitter.com/eSrZEUb4mB
— Winnie Schola (@WinnieSchola) August 21, 2024
The company is seeking damages not only from Lynch’s estate but also from Autonomy’s former CFO, Sushovan Hussain, who is currently serving a prison sentence in the US.
Notably, the lawsuit dates back to 2011, when HPE purchased Autonomy. HPE alleged significant accounting irregularities shortly after, claiming Lynch had inflated Autonomy’s financial figures.
In a significant development, Lynch faced a criminal trial in San Francisco earlier this year, following a protracted extradition process from the UK. The entrepreneur was accused of multiple counts of fraud and conspiracy, charges he denied throughout the proceedings.
During the trial, which lasted several weeks, Lynch took the stand in his own defense. He portrayed himself as a hands-off CEO, more focused on technology than day-to-day operations or accounting practices.
The plot thickens…..UK tech entrepreneur OBE Mike Lynch is still missing in Sicily yacht sinking after a mini tornado (that only managed to sink one yacht) has an interesting background.
The Entrepreneur who sold his company Autonomy to Hewlett-Packard was cleared in June 2024…
— The Yorkshire Lass (@real_shirelass) August 19, 2024
Lynch argued that any financial discrepancies were the responsibility of other executives and employees, as he often delegated tasks.
Prosecutors, however, painted a different picture, describing Lynch as the primary force behind what they alleged was a years-long fraudulent scheme.
They called numerous witnesses to support their case, though some struggled to recall specific details from events that occurred over a decade ago.
Surprisingly, Lynch was acquitted of all charges in the US criminal case.
However, this victory does not directly impact the ongoing civil lawsuit in the UK, where a High Court judge previously found Lynch liable for fraud.
