In a legal battle unfolding in London, Hewlett-Packard (HP) has claimed losses exceeding $4 billion resulting from an alleged fraud orchestrated by the co-founder of British software firm Autonomy, Mike Lynch.
According to Reuters, HP’s lawyers presented their case to the court on Monday, accusing Lynch of artificially inflating Autonomy’s value through fraudulent means.
Highlighting the magnitude of the case, HP seeks to recoup losses through a lawsuit targeting Lynch and Autonomy’s former chief financial officer, Sushovan Hussain.
The tech giant’s acquisition of Autonomy for $11.1 billion in 2011, once hailed as one of the UK’s most significant tech deals, ended in turmoil as HP wrote down Autonomy’s value by $8.8 billion within a year.
HP’s legal team argued that Lynch’s alleged fraud inflicted substantial financial harm on the company, justifying the pursuit of approximately $4 billion in damages.
However, Lynch, currently facing criminal charges in the United States related to the deal, maintains his innocence and denies any wrongdoing.
His lawyer, David Wolfson, countered HP’s claims, suggesting that the price HP would have paid for Autonomy would not have significantly differed due to the company’s unique technology and strategic value.
The legal dispute stems from one of the longest civil trials in English legal history, where HP emerged largely victorious in 2022.
Despite the court’s ruling in favour of HP, the determination of damages remains pending, with Lynch intending to seek permission to appeal.
This delay prolongs the legal saga, casting uncertainty over the resolution of the contentious lawsuit.
Echoing Lynch’s stance, lawyers representing Sushovan Hussain, who was previously convicted of fraud in the US, expressed agreement with Lynch’s defence.
Hussain, sentenced to five years in prison in 2019, aligns with Lynch’s assertion that HP suffered no actual loss due to the alleged fraudulent activities surrounding the Autonomy deal.
(With inputs from Reuters)
