Uk's Richest Man Creates Website to Rebut HP Allegations

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Uk's Richest Man Creates Website to Rebut HP Allegations

 user 2012-12-04 at 8:56:17 am Views: 127
  • #5510

    <p><font size=”5″><strong><a href=”http://www.latimes.com/business/technology/la-fi-tn-autonomy-founder-mike-lynch-creates-web-site-to-rebut-hp-charges-20121204,0,927752.story”>Uk’s Richest Man Creates Website to Rebut HP Allegations</a></strong></font></p>
    <p><font size=”4″>Autonomy founder Mike Lynch has stepped up his unusual public defense by <a href=”http://autonomyaccounts.org/”>launching a website </a>designed to bolster his argument that allegations of accounting fraud are untrue. </font></p>
    <p><font size=”4″><a href=”http://www.latimes.com/topic/economy-business-finance/hewlett-packard-co.-ORCRP007258.topic&#8221; title=”Hewlett-Packard Co.” id=”ORCRP007258″ class=”taxInlineTagLink”>Hewlett-Packard</a> made that stunning accusation last week, claiming that Lynch and other Autonomy executives engaged in systematic accounting tricks that inflated the company’s revenues before HP acquired it last year. </font></p>
    <p><font size=”4″>Rather than offering the standard “no comment” and ducking behind a wall of lawyers, Lynch has been all over TV and newspapers shooting down the notion that anything funny was going on at Autonomy. </font></p>
    <p><font size=”4″>The website is called <a href=”http://autonomyaccounts.org/”>”AutonomyAccounts.org”</a&gt; and appears to have gone live Monday. </font></p>
    <p><font size=”4″><span>”This website is maintained by Dr Mike Lynch on behalf of the former management team of Autonomy. The site provides relevant information pertaining to the accusations made by Hewlett Packard (HP) on 20 November 2012 of financial impropriety at Autonomy. The former management team of Autonomy strongly rejects the accusations made by HP,” reads the site’s “About” page.</span></font></p>
    <p><font size=”4″><span>The site also contains a timeline of Autonomy events, and Lynch’s letter to the HP board, disputing the claims, and demanding more information so he can defend himself: </span></font></p>
    <p><font size=”4″><span><span>”Having no details beyond the limited public information provided last week, and still with no further contact from you, I am writing today to ask you, the board of HP, for immediate and specific explanations for the allegations HP is making. HP should provide me with the interim report and any other documents which you say you have provided to the SEC and the SFO so that I can answer whatever is alleged, instead of the selective disclosure of non-material information via background discussions with the media.”</span></span></font></p>
    <p><font size=”4″><span><span>And, of course, the site provides a way to contact Lynch for further comment. <br />
    </span></span></font></p>
    <h1><img width=”580″ height=”336″ border=”0″ title=”Autonomy founder Mike Lynch appears on CNBC to defend himself against HP’s allegations. ” alt=”Autonomy founder Mike Lynch appears on CNBC to defend himself against HP’s allegations. ” src=”http://www.trbimg.com/img-50be112e/turbine/la-fi-tn-autonomy-founder-mike-lynch-creates-w-001/600&#8243; /></h1>
    <p class=”small”>Autonomy founder Mike Lynch appears on CNBC to defend himself against HP’s allegations. <span class=”credit”>(<span class=”photographer”>Autonomy Accounts website</span>)<br />
    <br />
    <br />
    </span><font size=”5″><a href=”http://www.infoworld.com/d/the-industry-standard/lynch-declares-innocence-in-open-letter-hp-board-hp-fires-back-207874″><font size=”2″>http://www.infoworld.com/d/the-industry-standard/lynch-declares-innocence-in-open-letter-hp-board-hp-fires-back-207874</font></a><br />
    <strong>Lynch declares innocence in open letter to HP board, HP fires back</strong></font><strong><font size=”4″><br />
    The public war of words comes after HP said it would take a multibillion writedown due to alleged accounting fraud by Autonomy</font></strong></p>
    <p><font size=”4″>The feud between Autonomy founder Mike Lynch and Hewlett-Packard’s leadership over alleged accounting fraud at the software vendor has intensified, with Lynch declaring his innocence in an open letter to the company’s board and HP quickly returning fire.</font></p>
    <p><font size=”4″><a href=”http://www.infoworld.com/d/the-industry-standard/hewlett-packard-takes-88-billion-charge-in-autonomy-acquisition-207486″>HP said last week that it would take a $8.8 billion write-down</a> in part due to the alleged accounting improprieties by Autonomy, which it acquired last year for $10.3 billion. The deal was roundly criticized by some observers, who believed HP had paid too much. But the alleged accounting fraud caused Autonomy to be highly overvalued, according to HP.</font></p>
    <p><font size=”4″>In his letter issued Tuesday, Lynch decried HP’s claims.</font></p>
    <p><font size=”4″>”It was shocking that HP put non-specific but highly damaging allegations into the public domain without prior notification or contact with me, as former CEO of Autonomy,” he wrote. “I utterly reject all allegations of impropriety. “</font></p>
    <p><font size=”4″>”Having no details beyond the limited public information provided last week, and still with no further contact from you, I am writing today to ask you, the board of HP, for immediate and specific explanations for the allegations HP is making,” Lynch added. “HP should provide me with the interim report and any other documents which you say you have provided to the SEC and the SFO so that I can answer whatever is alleged, instead of the selective disclosure of non-material information via background discussions with the media.”</font></p>
    <p><font size=”4″>Lynch challenged HP to answer a number of questions, including how it determined the alleged fraud constituted more than $5 billion of the $8.8 billion write-down.</font></p>
    <p><font size=”4″>”In order to justify a $5 billion accounting write-down, a significant amount of revenue must be involved,” he wrote. “Please explain how such issues could possibly have gone undetected during the extensive acquisition due diligence process and HP’s financial oversight of Autonomy for a year from acquisition until October 2012 (a period during which all of the Autonomy finance reported to HP’s CFO Cathie Lesjak).”</font></p>
    <p><font size=”4″>Lynch, who left HP in May, also questioned why the vendor’s management waited until now to disclose the allegations to shareholders.</font></p>
    <p><font size=”4″>The open letter was just the latest move by Lynch in response to HP’s allegations, as he has granted a number of media interviews on the subject.</font></p>
    <p><font size=”4″>In a statement released Tuesday, HP declined to address Lynch’s questions.</font></p>
    <p><font size=”4″>”While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders,” it stated. “In that setting, we look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury.”</font></p>
    <p><font size=”4″>”The matter is in the hands of the authorities, including the UK Serious Fraud Office, the US Securities and Exchange Commission’s Enforcement Division and the US Department of Justice, and we will defer to them as to how they wish to engage with Dr. Lynch,” it added. “In addition, HP will take legal action against the parties involved at the appropriate time.”</font></p>