A High Court judge ordered £730 million in damages against the estate of Mike Lynch, stemming from the 2011 acquisition of Autonomy by HP. The judge, Mr Justice Hildyard, concluded Lynch and finance chief Sushovan Hussain fraudulently inflated Autonomy's value through accounting irregularities. The ruling marks one of the largest corporate fraud penalties in UK history, with possible interest increasing the amount. Hildyard noted HP's initial $4 billion claim was exaggerated, yet determined Autonomy's true value was lower than presented at the time of sale. Lynch's estate must now endure the financial repercussions of this decision.
Mr Justice Hildyard concluded that Lynch and Hussain fraudulently inflated Autonomy's value through accounting irregularities, leading to a damages ruling of £730 million for HP.
Hildyard emphasized that the original £4 billion claim from HP was "substantially exaggerated", but found that Autonomy's true value was lower than represented during the sale.
The judgment represents one of the largest corporate fraud penalties in UK legal history, potentially wiping out Lynch's estate from the damages awarded.
Had Autonomy's accounts been accurately stated, the deal would likely have valued each share at £23, significantly lower than the £25.50 HP paid.
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