LONDON (Reuters) – Hewlett-Packard misplaced greater than $4 billion over its acquisition of British software program agency Autonomy due to an elaborate fraud masterminded by its co-founder Mike Lynch to inflate the corporate’s worth, HP’s legal professionals instructed a London court docket on Monday.
HP is searching for to recoup losses in a lawsuit introduced towards Lynch, as soon as hailed as Britain’s reply to Invoice Gates, and Autonomy’s former chief monetary officer, Sushovan Hussain.
The U.S. expertise big purchased Autonomy for $11.1 billion in 2011, in one of many UK’s largest tech offers. However the deal spectacularly unravelled, with HP writing down Autonomy’s worth by $8.8 billion inside a 12 months.
Following one of many longest civil trials in English authorized historical past, HP in 2022 considerably received its case, although a Excessive Court docket choose mentioned any damages can be considerably lower than the $5 billion HP had claimed.
HP’s legal professionals argued on Monday that its losses ensuing from the fraud entitle it to about $4 billion.
However Lynch – who final 12 months was extradited to america to face prison costs over the deal, with a trial attributable to begin subsequent month – argues HP suffered no actual loss. He denies any wrongdoing.
His lawyer David Wolfson mentioned in court docket filings that the value HP would have paid “wouldn’t have been materially totally different”, partly due to Autonomy’s distinctive expertise and HP’s strategic rationale for the acquisition.
Lynch intends to hunt permission to attraction towards the 2022 ruling, which has been delayed till after the willpower of damages, his legal professionals beforehand mentioned.
Attorneys representing Hussain, who was convicted of fraud within the U.S. and sentenced to 5 years in jail in 2019, mentioned he agreed with Lynch’s case.
(Reporting by Sam Tobin; Modifying by Ros Russell)
