Hewlett-Packard wins civil fraud against Mike Lynch over the sale of Autonomy | Hewlett-Packard

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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.

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Who is Mike Lynch?

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Mike Lynch, 56, the son of an Essex-born nurse and firefighter, received a private school scholarship at the age of 11 and subsequently earned an undergraduate and PhD in Cambridge. His dissertation is one of the most consulted dissertations at the university and is considered to be the world leader in signal processing, which is the key to data processing.

A series of technology start-up businesses continued in the 1980s and 90s, when Autonomy was founded in 1996. The company aimed to analyze and categorize “unstructured” information from sources such as telephones. This is a potential data gold mine for large companies.

His success has brought great fame to it. He was selected as an entrepreneur of the year by the Confederation of British Industry in 1999, was awarded an OBE in 2006, and became an advisor to 10 Downing Street in 2011. Lynch also served as a councilor for the Royal Botanical Gardens of Kew. I sat on the board of directors of the BBC and the British Library.

In 2011, he plunged about $ 800 million by selling Autonomy to US technology company Hewlett Packard for a $ 11 billion transaction. But the deal quickly became sour. Lynch was dismissed from autonomy in 2012.

Hewlett-Packard’s successor pursued Lynch in a civil lawsuit in London, claiming that he fraudulently inflated the value of autonomy. In 2018, U.S. officials filed criminal charges against him and other former Autonomy executives, alleging that he was involved in a fraudulent plan to deceive buyers and sellers of Autonomy securities. They started the transfer procedure in 2019.

Still, Lynch has an influence on the UK tech scene. He was an early backer of cybersecurity company Darktrace, having a stake worth £ 220 million by July 2021 after listing on the London Stock Exchange. Darktrace said its relationship with Lynch is a risk of reputation when filing an initial public offering.

His hobby of marrying his two daughters is described in Who’s Who as a jazz saxophone, and he also protects rare breeds such as the Red Poll cows raised in Suffolk homes.

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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.

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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

Source link Hewlett-Packard wins civil fraud against Mike Lynch over the sale of Autonomy | Hewlett-Packard

The post Hewlett-Packard wins civil fraud against Mike Lynch over the sale of Autonomy | Hewlett-Packard appeared first on Eminetra.

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