Hewlett Packard (HP) is pursuing a $1.7 billion (£1.3 billion) claim against the estate of Mike Lynch, who tragically died in a yachting accident last year, related to HP’s acquisition of his company Autonomy, according to legal representatives in the High Court.
HP, now operating as Hewlett-Packard Enterprise (HPE), acquired Mr. Lynch’s technology firm Autonomy in 2011. The company alleges that Mr. Lynch and Autonomy’s former chief financial officer, Sushovan Hussain, misrepresented the firm’s financial standing at the time of the acquisition.
During a 2019 trial, HPE accused Mr. Lynch of artificially inflating Autonomy’s revenues, a factor they claim led to an $8.8 billion write-down of Autonomy’s value.
In 2022, Mr. Justice Hildyard ruled that HPE had “substantially succeeded” in its claim, while also noting that the damages awarded would likely be “substantially less” than the initial $5 billion sought.
Earlier this year, the same judge determined that HPE had incurred losses of approximately £700 million due to the Autonomy purchase.
Mr. Lynch and his daughter Hannah were among the seven passengers and crew members who perished when the yacht Bayesian sank off the coast of Sicily in August of last year, succumbing to a storm that caused the vessel to capsize.
A hearing underway in London since Tuesday will determine whether Mr. Lynch’s estate will be granted the right to appeal the 2022 and 2025 rulings.
In submitted documentation, Patrick Goodall, the barrister representing HPE, argues that Mr. Lynch’s estate is liable for the $1.7 billion, which includes approximately $761 million in accrued interest.
He asserted that Mr. Lynch had “not only perpetrated an enormous fraud, but lied about it at every stage.”
Mr. Goodall also stated that the claimants have spent nearly £150 million on legal proceedings and are seeking close to £113 million to cover their costs from Mr. Lynch’s estate.
Further, Mr. Goodall argued against allowing Mr. Lynch’s estate to appeal either the 2022 or 2025 rulings.
Conversely, Richard Hill, the lawyer representing Mr. Lynch’s estate, argued in his written submissions that the $761 million in interest sought by HPE constitutes an “excessive sum… based on a flawed analysis”, proposing that a “legally and economically rational approach would provide for a materially lower figure.”
He added that the claimants’ assertion “they were the victors in this litigation” was “overly simplistic.”
Mr. Hill also stated that Mr. Lynch’s estate should be allowed to appeal the previous rulings, alleging that the judge “erred in law” and that there is a “compelling reason for allowing the appeal to be heard.”
A spokesperson for the Lynch family has stated: “Today’s hearing addresses technical matters that change nothing about the underlying substance of the case.”
“The core facts remain that HP’s claim was fundamentally flawed and a wild overstatement.”
In a separate legal matter, Mr. Lynch was extradited to the United States in 2023 to face criminal charges, but was acquitted of fraud charges in 2024.
He was reportedly celebrating his acquittal aboard his yacht when the vessel sank.