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HP to Continue Pursuing $4B Claim
Against Estate of Mike Lynch Following His Death.
Hewlett Packard Enterprise (HPE) has announced its decision to continue seeking $4 billion in damages from the estate of Mike Lynch, the former CEO of Autonomy, despite his recent death in a tragic sailing accident off the coast of Sicily. Lynch, who had been cleared of criminal fraud charges in the United States earlier this year, was killed in the accident along with his 18-year-old daughter. His wife Angela Bacares survived the incident.The legal battle stems from a UK civil trial in 2022 where HP won a judgment asserting that Lynch and former CFO Sushovan Hussain had deliberately misrepresented the value of Autonomy during its 2011 acquisition by HP. This ruling enabled HPE to seek substantial damages for the financial losses attributed to the alleged fraud.
In a London hearing earlier this year, HP’s legal team argued that the company was entitled to $4 billion in damages. However, a High Court judge indicated that the final compensation might be considerably lower than the amount HP is pursuing. The court is still deliberating the exact figure.
An HPE spokesperson confirmed today: “Following the 2022 ruling by the English High Court, which found in favor of HP’s civil fraud claims against Dr. Lynch and Mr. Hussain, we are committed to seeing this matter through to its conclusion. We are awaiting the judge’s final decision on the damages owed to HP.”
Considering Lynch’s death, there had been speculation regarding whether HP would continue with its claim. On August 22, following the confirmation of Lynch’s passing, The Register (below) reached out to HP for a statement on whether they would pursue financial reparations from Lynch’s estate. At the time, HP declined to comment on ongoing legal matters in the context of the tragedy.
Despite the somber circumstances, it was widely anticipated that HP would persist in its claim. Dropping the suit could potentially expose HP to a class action from its shareholders, who might demand financial redress for the losses incurred. Thus, the company’s move to continue with the claim aligns with shareholder interests and underscores its commitment to resolving the legal dispute comprehensively.
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