UK court awards £700 million to HP as late tycoon’s fraud case resolved.
High Court Grants £700 Million to Hewlett Packard for Autonomy Fraud
In a landmark decision, a UK civil court awarded £700 million ($946 million) to Hewlett Packard Enterprise (HPE) for fraud allegations tied to the 2011 sale of the British software firm Autonomy.
Background of the Case
- Autonomy was founded in the 1990s by Mike Lynch, dubbed the “British Bill Gates”.
- In 2011, HP acquired Autonomy for $11 billion, subsequently facing fraud charges in the United States.
- HP alleged that Autonomy had inflated revenues and growth figures before the sale, demanding $5 billion in compensation.
- Justice Robert Hildyard in the UK ruling stated that HP’s claims were “substantially exaggerated”.
- HP’s write‑downs amounted to nearly $9 billion, including more than $5 billion attributed to alleged accounting manipulations by Autonomy’s directors.
Outcome of the UK Court Ruling
The court’s award moves HPE closer to resolving a long‑standing dispute. A spokesperson for HPE noted:
“We are pleased that this decision brings us a step closer to the resolution of this dispute.”
HPE anticipates a further hearing in November to determine the final damage amount, addressing interest, currency conversion, and the possibility of an appeal by Lynch’s estate.
Tragic End of Mike Lynch
- Mike Lynch, 59, died in August 2024 when his superyacht Bayesian sank off Sicily.
- The 56‑metre yacht was struck by a mini‑tornado before dawn while anchored near Porticello, near Palermo.
- Thirteen people perished, including Lynch, his 18‑year‑old daughter Hannah, four friends, and the yacht’s cook.
- Lynch had been celebrating his acquittal in the massive US fraud case on board the vessel.
Implications for Lynch’s Estate
HPE will consider appealing the decision, but any debts will have to be discharged from Lynch’s estate. The final hearing in November will clarify whether Lynch’s family can contest the ruling.
Key Takeaways
- UK court awarded £700 million to HPE for Autonomy fraud
- Mike Lynch died in a yacht sinking off Sicily in August 2024
- Further hearing scheduled for November to finalize damage amount and address potential appeal
