Hewlett Packard pursues £1.5 billion pounds from Mike Lynch estate following Autonomy fraud ruling

Hewlett Packard is seeking £1.5 billion from the estate of the late British technology entrepreneur Mike Lynch, escalating its demands in the aftermath of the long-running Autonomy fraud case. The American technology group has lodged new legal claims, now seeking a sum that far exceeds the £740 million in damages previously determined by a High Court judge as losses incurred from HP’s contentious acquisition of Autonomy in 2011. The heightened figure is based on HP’s calculations, which incorporate interest, legal costs, and currency considerations since the deal’s completion.

The original purchase of Autonomy, valued at £7 billion, drew significant attention to Lynch, who had been hailed as one of Britain’s leading technology minds. However, the transaction quickly soured after Hewlett Packard accused Lynch and Autonomy’s former finance chief, Sushovan Hussain, of inflating the company’s value through complex accounting practices. HP initiated legal proceedings in 2015. Lynch was found liable for fraud in 2022, while Mr Hussain reached a separate settlement of £78 million earlier this year.

Lynch was acquitted on related criminal charges in the United States last year. Shortly after the positive outcome, Lynch and his teenage daughter Hannah tragically died while celebrating aboard his superyacht. Management of Lynch’s estate now falls to Jeremy Sandelson of Clifford Chance, who is challenging the magnitude of HP’s damages claim and is seeking permission to appeal the original fraud ruling. A substantial portion of the Lynch family’s assets remain secured in the name of his wife, Angela Bacares, protecting them from any potential ruling against the estate.

In July, Mr Justice Hildyard attributed HP’s losses to the artificially inflated valuation of Autonomy, predominantly achieved through accounting manipulations. The court is yet to determine the final amount to be paid, which will include accrued interest now estimated by HP at over $760 million (£578 million), alongside nearly £120 million in legal fees. The Lynch estate disputes these calculations, maintaining that HP’s losses largely resulted from its own mishandling of Autonomy post-acquisition.

Arguments over the technical aspects of damage estimation and the specific entity allegedly misled by Lynch continue in court. A spokesman for Lynch’s family has described HP’s assertions as exaggerated and argues that the outcome of the US criminal trial raises questions about the original conclusions in the UK. HP, meanwhile, views the ongoing hearings as a step toward final resolution. The saga stands as one of the most protracted disputes in English legal history, with substantial financial and reputational stakes for all involved.