Hewlett Packard Enterprise lost about 730 million after buying Mike Lynch, Autonomy, decided a London judge less than a year after the British technology tycoon.
Mike Lynch’s estate will face a claim for much of this value after he lost a lawsuit for London fraud, along with former Autonomy financial director Sushovan Hussain. The decision suggests that HPE will probably receive only a fraction of the $ 4 billion that claims, arising from the great low accounting that has made about the British software company.
HPE chose to pursue damage, claiming to have a “fiduciary duty” to shareholders after winning the 2022 fraud against Lynch and his company Autonomy Corp. A lawyer from the Lynch estate said he would consider appealing to both the original decision and the determination of the damage.
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On Tuesday (22), Judge Robert Hildyard issued his long awaited decision after having previously concluded that HP paid too much by buying Autonomy for more than $ 11 billion.
Lynch faced legal issues for years related to the 2011 sale. The judge’s decision was originally expected to be published in the fall of 2024.
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“I consider the HP claim to have always been substantially exaggerated,” Hildyard said in his trial. He stated that “there is more than a real grain” in Lynch’s argument that when HP said he was fraudulent at up to $ 5 billion, “the value was not based on a detailed analysis.”
Although Lynch was acquitted of the US criminal accusations, the Judge of London declared him responsible for creating the illusion of a larger and more successful company than it really was.
“We are pleased that this decision brings us closer to the resolution of this dispute,” said HPE. “We are waiting for the next hearing, in which the final value of HPE’s damage will be determined.”
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In a statement sent by his advisers, which Lynch prepared before his death, he stated that the original claim was out of reality.
“This result exposes HP’s failure and makes it clear that the immense damage to Autonomy was caused by HP’s own mistakes and actions,” Lynch said in the posthumous statement.
Lynch died, along with her 18 -year -old daughter, Hannah, after her luxury yacht wreck in severe weather conditions. He was celebrating his acquittal in the US with a small group of advisers when the storm hit. His wife, Angela Bacares, managed to escape, while Lynch’s other daughter was not on board at the time.
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A civil action in the United Kingdom automatically ensures that the case is transferred to the defendant’s estate in case of death.
“It is a source of anguish having to make a judgment that will inevitably cause more stress to those involved,” Hildyard said.
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