The estate of Mike Lynch has been ordered to pay Hewlett Packard £920million in damages following a High Court ruling delivered today, a judgment that would leave the late tech entrepreneur’s estate bankrupt.
Mr Justice Hildyard determined that HP was entitled to compensation totalling $1.24billion, including $236million in interest, over the fraudulent sale of Mr Lynch’s software firm Autonomy some 15 years ago.
Court documents from US proceedings estimated Lynch’s wealth at approximately $450million, meaning the award far exceeds the available assets.
Mr Lynch’s widow, Angela Bacares, holds significant assets independently, though whether HP will seek to recover the remaining sum from her remains uncertain.
HP acquired Autonomy for $11.1billion in 2011, but wrote down the company’s value by $8.8billion within twelve months of completing the deal.
The American technology giant launched legal action against Mr Lynch and his former finance chief Sushovan Hussain in 2015, initially seeking $5billion in damages.
Following one of Britain’s most complex commercial disputes, the High Court found both men liable in 2022, concluding they had fraudulently misrepresented Autonomy’s financial position prior to the takeover.
Prosecutors alleged that Mr Lynch and fellow executives had artificially inflated the company’s worth through improper accounting practices before selling to HP.
Payouts over the fraudulent sale of the late entrepreneur’s company risk draining his estate
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Mr Lynch, once dubbed “Britain’s Bill Gates”, passed away in August 2024 when his superyacht Bayesian sank during a sudden storm off the Sicilian coast.
The tragedy occurred just weeks after Mr Lynch had secured an unexpected victory against American prosecutors, with a San Francisco jury clearing him of criminal fraud charges related to the Autonomy transaction.
Mr Lynch’s widow holds significant assets independently
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REUTERSThe summer voyage had been organised to mark his acquittal, and Lynch had been making plans to rebuild his life following years of legal battles on both sides of the Atlantic.
Mr Justice Hildyard refused the estate’s lawyers permission to challenge the ruling, though they retain the option of applying directly to the Court of Appeal.
Legal representatives for Mr Lynch’s estate had argued the court “erred in law” and that compelling reasons existed for reconsideration, particularly regarding interest calculations they deemed excessive.
The estate of Mike Lynch has been ordered to pay Hewlett Packard £920million in damages following a High Court ruling delivered today
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GETTYHP welcomed the decision, with a spokesman stating: “HP is pleased with the court’s ruling and its rejection of the estate’s request for permission to appeal, which brings us another step closer to resolution of the dispute.”
Hussain reached a separate agreement with the company last year, paying £77million to settle his portion of the claim.