Hewlett-Packard 6-year civil fraud case The man was once welcomed as Britain’s answer to Bill Gates after a High Court judge ruled that he had deceived a U.S. company against Mike Lynch. Pay £ 8.2 billion to his software company Autonomy..
Waiting to find out if it could be handed over to the United States to face another criminal trial on Friday, Lynch tricked HP by manipulating Autonomy’s account to inflate the company’s value. I found out that there is. He always denied the charges and said he would appeal on Friday.
“Plaintiffs have substantially succeeded in their allegations in this proceeding,” said Judge Hildyard after a 93-day trial in which 28,000 documents were considered evidence.
He said that the amount of damages Hewlett-Packard (HP) and its successor, he also questioned the credibility of US corporate witnesses.
However, he determined that HP was led to an overpayment of the acquisition due to a fraud committed by Lynch and former Autonomy chief financial officer Saddam Hussein. Being in jail in the United States After being convicted of fraud related to the same transaction.
On Friday night, Lynch was still awaiting a ruling from the Interior Ministry over whether it could be tried over allegations of deceiving HP investors.
A US company purchased Autonomy for $ 11 billion in 2011, targeting software that helps companies store and retrieve “unstructured data” such as voicemail and email. Lynch earned £ 500m on this sale and was welcomed as one of the few global tech champions in the UK.
Within a year, HP reduced its value by $ 9 billion (£ 6.7 billion). Condemn “serious accounting fraud” related to transactions.. HP claimed that Lynch and his team mistakenly made the company more attractive through accounting tricks.
In a long summary of his conclusions, Hildyard found that Lynch and Hussein were “dishonest” and had developed several strategies that were artificially inflated and profitable.
This involves using hardware sales to “disguise” software revenue shortfalls, conceal costs, and “friendly” companies to accelerate revenues from sales to meet market expectations. Includes making an arrangement.
However, the quality of the data-structured product IDOL, which former HP boss Meg Whitman described as “almost magically,” allows HP to purchase Autonomy even if financial performance has not been artificially enhanced. He said he was highly sexual. ..
He also found that the size of the damages to be determined at a later date is likely to be “much less” than HP claims $ 5 billion. He said he didn’t want to delay his verdict on Lynch’s liability because the damages decision would take some time, but could affect whether he was handed over.
A London court ruled in July last year that Lynch, who denied cheating, should be expelled, but the final decision was left to Home Secretary Priti Patel, with a deadline of midnight Friday in the High Court’s ruling. It’s a day.
US trials will cover many of the same reasons as London civil lawsuits.
After the High Court ruling, a spokesperson for Hewlett Packard Enterprise (HPE) said: HPE is pleased that the judges have made them accountable. “
Clifford Chance’s Kelwin Nichols, Lynch’s lawyer, said: We will consider a complete decision over the next few weeks.
“Note the judge’s concerns about the credibility of some of HP’s Witnesses, and the judge’s expectation that HP will suffer significantly less than the $ 5 billion claimed. increase.”
Hewlett-Packard wins civil fraud against Mike Lynch over the sale of Autonomy | Hewlett-Packard
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