Hewlett Packard, now known as Hewlett-Packard Enterprise (HPE), is pursuing $1.7 billion (£1.3 billion) from the estate of Mike Lynch, who died in a yacht accident last year. This claim arises from HPE’s acquisition of Lynch’s firm, Autonomy, in 2011, which HPE alleges was misrepresented regarding its finances by Lynch and the former CFO, Sushovan Hussain.
In a 2019 trial, HPE accused Lynch of inflating Autonomy’s revenues, a misrepresentation that led HPE to report an $8.8 billion write-down of the company’s value. A ruling by Mr. Justice Hildyard in 2022 indicated that while HPE had “substantially succeeded” in its claims, the compensation would likely be less than the $5 billion initially sought. Earlier in 2023, Hildyard determined that HPE incurred losses of approximately £700 million from the acquisition.
Lynch and six others, including his daughter, died when the yacht Bayesian capsized off the coast of Sicily during a storm in August 2022. A hearing has begun in London to determine if Lynch’s estate may appeal the ruling from 2022 and 2025.
In court, HPE’s barrister, Patrick Goodall, asserted that Lynch’s estate should pay the $1.7 billion, which includes about $761 million in interest. He claimed that Lynch engaged in significant fraud. HPE reported spending nearly £150 million on legal costs and is seeking about £113 million from Lynch’s estate.
Conversely, Richard Hill, representing Lynch’s estate, contended that the claimed interest is excessive and based on flawed analysis. He also suggested that Lynch’s estate should be allowed to appeal, claiming the earlier judge erred in legal matters. A spokesperson for the Lynch family described HPE’s claims as fundamentally flawed.
Additionally, Lynch was extradited to the U.S. in 2023 facing criminal charges but was cleared of fraud in 2024. His yacht sank shortly after he celebrated this acquittal.
Source: https://www.bbc.com/news/articles/cz7p4gynxlzo?at_medium=RSS&at_campaign=rss