A UK High Court judge has ruled that the estate of British tech tycoon Mike Lynch, along with his former finance director, owe Hewlett Packard Enterprise (HPE) over $940 million (£700 million) following a fraud case related to Lynch's software company, Autonomy Corp.
The ruling comes almost a year after Lynch tragically died when his superyacht, the Bayesian, sank off the coast of Sicily. He had been celebrating his acquittal in a separate US criminal trial just months before the devastating accident.
HPE had accused Lynch of fraud and conspiracy, alleging that he misrepresented Autonomy's finances before HPE acquired the company for $11 billion. The company pursued legal action in the UK, seeking up to $4 billion in damages.
The Court's Decision
The High Court had previously ruled largely in favor of HPE in 2022, but the final amount to be awarded remained uncertain. Judge Robert Hildyard delayed the final ruling after Lynch's yacht sank during a storm in August, resulting in the deaths of Lynch and six others.
In his written judgment, Judge Hildyard expressed his condolences to Lynch's family. He stated that HPE suffered a loss of £646 million, based on the difference between Autonomy's purchase price and what HPE would have paid had Autonomy's "true financial position been correctly presented."
HPE's Perspective
HPE has stated that it is "pleased that this decision brings us a step closer to the resolution of this dispute" and looks forward to determining the final amount of damages owed.
- HPE accused Lynch and his CFO of fraudulently inflating Autonomy's value.
- HPE bought Autonomy for $11.1 billion in 2011.
- HPE later wrote down Autonomy's value by $8.8 billion due to accounting improprieties.
Lynch had previously denied the claims, stating that HPE had "botched the purchase of Autonomy."