Hewlett Packard Enterprise will continue with its legal efforts to recover up to $4 billion damages from the estate of late British tech entrepreneur Mike Lynch, who died last month after his yacht sank off the Italian coast.
The damages that HPE wants to recover arise from a civil lawsuit in which the company had lodged fraud claims against Lynch related to Autonomy, a company he co-founded. Lynch denied the allegations.
In 2022, the British court issued a ruling in the case that largely sided with the company.
Mike Lynch, former chief executive officer of Autonomy Corp., arrives at federal court in San Francisco, California, on March 18, 2024. Lynch was charged with 14 counts of wire fraud, one count of securities fraud and one count of conspiracy to commi (Loren Elliott/Bloomberg via Getty Images / Getty Images)
"Dr. Lynch’s death is a tragedy, as are the death of others on the ship. However, it doesn’t change what happened. A UK judge ruled in 2022 that the Company is a victim of fraud committed by Dr. Lynch and his co-defendant Sushovan Hussain. HPE has a responsibility to recover damages for its shareholders," HPE said in a Thursday statement to Gxstocks.
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Six others died during the sinking of the British tech entrepreneur’s yacht last month.
Lynch also faced charges from the U.S. government related to Autonomy and its sale to HP. He was found not guilty of all charges in early June.
Mike Lynch, former chief executive officer of Autonomy Corp., reacts during an interview in London on Nov. 13, 2014. (Chris Ratcliffe/Bloomberg via Getty Images / Getty Images)
"I am elated with today's verdict," Lynch said of the jury's decision in June. "I am looking forward to returning to the U.K. and getting back to what I love most: my family and innovating in my field."
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HP bought Autonomy for $11.1 billion in 2011 in one of the UK's biggest tech deals. But in late 2012, the company said it had discovered a massive accounting scandal at the British tech firm.
The company ended up writing-down Autonomy. Lynch co-founded Autonomy in the late 1990s.
Gxstocks' Breck Dumas and Reuters contributed to this report.
