A court ruled that Mike Lynch's estate and his business partner owe Hewlett-Packard over $700 million concerning the flawed acquisition of Autonomy. The estate was valued at approximately $500 million, and paying this ruling could lead to bankruptcy. Lynch and his daughter died in a boating accident after his acquittal on US fraud charges related to HP's $11 billion acquisition of Autonomy in 2011. The court found that HP's losses were caused by inaccurate financial disclosures from Lynch's company, justifying a claim of deceit and misrepresentation against him and his finance director.
The estate of Mike Lynch, who died a year ago when his superyacht sank off the coast of Sicily, and his business partner owe Hewlett-Packard more than 700m, a court has ruled.
HP won a separate six-year civil fraud case against Lynch and his former finance director Sushovan Hussain in the English high court in 2022, with Mr Justice Hildyard ruling that the US company had been induced into overpaying for the business.
Hildyard ruled on the amount owed to HP, determining that HP sustained losses of more than 646m in relation to the difference between what it paid for Autonomy and what it would have paid if its true financial position had been known.
Hildyard considered that HP's original $4.55bn claim was always exaggerated, and I have concluded that there is more than a grain of truth in Dr Lynch's submission.
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