Dan Lynch Honored with Vistage 2025 Lifetime Achievement Award
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New York Post
15 hours ago
- New York Post
HP owed nearly $1B by estate of UK tycoon Mike Lynch, who died after his luxury yacht sank
Hewlett Packard is owed nearly $1 billion by the estate of the late Mike Lynch and his former business partner over HP's acquisition of their British software firm Autonomy, London's High Court ruled on Tuesday. HP was seeking to recoup its losses from Lynch – who died last year when his luxury yacht sank off Sicily – and Autonomy's former chief financial officer, Sushovan Hussain. The technology giant welcomed Tuesday's ruling, which said HP was owed $944 million in relation to the difference between the price it paid and the price it would have paid for Autonomy had it known its 'true financial position.' Advertisement 3 HP sued Autonomy CEO Mike Lynch, accusing him of masterminding an elaborate fraud to inflate the value of Autonomy, which HP bought for $11.1 billion in 2011. REUTERS In addition, HP is entitled to another $47.5 million for losses suffered by Autonomy group companies in relation to hardware sales and other transactions. A spokesperson for Lynch's family released a statement, which the spokesperson said Lynch prepared last year before his death, having seen a draft of Tuesday's long-delayed ruling. Lynch said in the statement that the judgment showed HP's initial claim for up to $5 billion was a 'wild overstatement.' Advertisement A further hearing will take place in November, to determine any applications for permission to appeal and how damages to be paid will be divided between Lynch's estate and Hussain, with whom HP settled earlier this year. HP sued Lynch and Hussain in 2015, accusing them of masterminding an elaborate fraud to inflate the value of Autonomy, which HP bought for $11.1 billion in 2011. The deal spectacularly unraveled in less than a year and HP wrote down Autonomy's value by $8.8 billion within a year before bringing a $5 billion lawsuit against Lynch and Hussain in London. Advertisement 3 Lynch died last year when his luxury yacht sank off the coast of Sicily. REUTERS 'Considerably less' The High Court ruled in HP's favor in 2022, though a judge said the company would receive 'considerably less' than $5 billion. Lynch, once hailed as Britain's answer to Bill Gates, had always maintained his innocence and blamed HP for failing to integrate Autonomy into the company. He was acquitted of criminal charges over the deal in the US and had intended to appeal the High Court's 2022 ruling, a process which was on hold pending Tuesday's decision on damages. Advertisement 3 HP wrote down Autonomy's value by $8.8 billion within a year before bringing a $5 billion lawsuit against Lynch and Hussain in London. EPA Judge Robert Hildyard ruled that HP would have paid 23 pounds a share, rather than the 25.50 pounds it actually paid, when it bought Autonomy. HP had been seeking up to $4 billion, its lawyers said at a hearing last year. Hildyard said in his ruling that the value of HP's claim 'was always substantially exaggerated.'
19 hours ago
UK court says HPE owed more than $940 million in fraud case against late tech tycoon Mike Lynch
LONDON -- Hewlett Packard is owed more than 700 million pounds ($943 million) from British tech tycoon Mike Lynch's estate and his former finance director after they lost a fraud case involving Lynch's software company, a U.K. High Court judge ruled on Tuesday. The court's decision comes nearly a year after Lynch was killed when his superyacht sank off Sicily, where he had gathered with friends and family to celebrate his acquittal months earlier in a separate U.S. criminal trial. The U.S. tech company, now known as Hewlett-Packard Enterprise, had accused Lynch of fraud and conspiracy after it bought Lynch's company, Autonomy Corp., for $11 billion. HPE also took Lynch to court in the U.K., seeking up to $4 billion in damages in a civil case. The High Court had ruled mostly in HPE's favor in 2022, but the judge had said that the amount awarded would be 'substantially less' than the company was seeking. Judge Robert Hildyard was originally due to issue a draft ruling in September but delayed it after Lynch's yacht, the Bayesian, sank in the storm off Sicily on Aug. 19. Lynch and his daughter were among seven people who died while 15 others survived, including the captain and most of the crew. In a written judgment, Hildyard expressed his 'sympathy and deepest condolences' to Lynch's wife and family. Hildyard said HPE suffered a loss of 646 million pounds based on the difference between Autonomy's purchase price and what it would have paid had Autonomy's 'true financial position been correctly presented." HPE is also owed 51.7 million pounds for "personal claims related to deceit and/or misrepresentation" against Lynch and Sushovan Hussain, the finance director, and $47.5 million for other losses. Hussain was convicted in a 2018 U.S. trial of wire fraud and other crimes related to Autonomy's sale, and sentenced to five years in prison. 'We are pleased that this decision brings us a step closer to the resolution of this dispute," HPE said in a statement. "We look forward to the further hearing at which the final amount of HPE's damages will be determined.' A hearing to deal with interest, currency conversion and whether Lynch's estate can appeal is set for November. In a statement written before his death and issued posthumously, Lynch said the ruling shows that HP's original claim 'was not just a wild overstatement - misleading shareholders - but it was off the mark by 80%.' 'This result exposes HP's failure and makes clear that the immense damage to Autonomy was down to HP's own errors and actions," he said.
San Francisco Chronicle
19 hours ago
- San Francisco Chronicle
UK court says HPE owed more than $940 million in fraud case against late tech tycoon Mike Lynch
LONDON (AP) — Hewlett Packard is owed more than 700 million pounds ($943 million) from British tech tycoon Mike Lynch's estate and his former finance director after they lost a fraud case involving Lynch's software company, a U.K. High Court judge ruled on Tuesday. The court's decision comes nearly a year after Lynch was killed when his superyacht sank off Sicily, where he had gathered with friends and family to celebrate his acquittal months earlier in a separate U.S. criminal trial. The U.S. tech company, now known as Hewlett-Packard Enterprise, had accused Lynch of fraud and conspiracy after it bought Lynch's company, Autonomy Corp., for $11 billion. HPE also took Lynch to court in the U.K., seeking up to $4 billion in damages in a civil case. The High Court had ruled mostly in HPE's favor in 2022, but the judge had said that the amount awarded would be 'substantially less' than the company was seeking. Judge Robert Hildyard was originally due to issue a draft ruling in September but delayed it after Lynch's yacht, the Bayesian, sank in the storm off Sicily on Aug. 19. Lynch and his daughter were among seven people who died while 15 others survived, including the captain and most of the crew. In a written judgment, Hildyard expressed his 'sympathy and deepest condolences' to Lynch's wife and family. Hildyard said HPE suffered a loss of 646 million pounds based on the difference between Autonomy's purchase price and what it would have paid had Autonomy's 'true financial position been correctly presented." HPE is also owed 51.7 million pounds for "personal claims related to deceit and/or misrepresentation" against Lynch and Sushovan Hussain, the finance director, and $47.5 million for other losses. Hussain was convicted in a 2018 U.S. trial of wire fraud and other crimes related to Autonomy's sale, and sentenced to five years in prison. 'We are pleased that this decision brings us a step closer to the resolution of this dispute," HPE said in a statement. "We look forward to the further hearing at which the final amount of HPE's damages will be determined.' A hearing to deal with interest, currency conversion and whether Lynch's estate can appeal is set for November. In a statement written before his death and issued posthumously, Lynch said the ruling shows that HP's original claim 'was not just a wild overstatement - misleading shareholders - but it was off the mark by 80%.'
