HP seeking $1.7bn from Mike Lynch’s estate

Hewlett Packard (HP) is searching for $1.7bn (£1.3bn) from the property of Mike Lynch – who died final yr when his yacht sank – over HP’s acquisition of his agency Autonomy, the tech large’s legal professionals have instructed the Excessive Court docket.HP, now often known as Hewlett-Packard Enterprise (HPE), purchased Mr Lynch’s tech agency Autonomy in 2011, nevertheless it says Mr Lynch and Autonomy’s former chief monetary officer, Sushovan Hussain, misrepresented the corporate’s funds.In a 2019 trial, HPE had accused Mr Lynch of inflating Autonomy’s revenues which it mentioned pressured it to announce an $8.8bn write-down of the corporate’s price.Mr Justice Hildyard dominated in 2022 that HPE had “considerably succeeded” in its declare, however that it was prone to obtain “considerably much less” than the $5bn it sought in damages.Earlier this yr, he dominated that HPE suffered losses amounting to round £700m via the acquisition of Autonomy.Mr Lynch and his teenage daughter Hannah have been amongst seven passengers and crew who died when the Bayesian went down off the coast of Sicily final August throughout a storm which prompted the vessel to capsize and sink.A listening to in London, which started on Tuesday, will now resolve whether or not Mr Lynch’s property can enchantment towards the 2022 and 2025 rulings.In written submissions, Patrick Goodall, the barrister representing HPE, argued that Mr Lynch’s property was liable to pay $1.7bn, which incorporates round $761m in curiosity.He mentioned that Mr Lynch had “not solely perpetrated an unlimited fraud, however lied about it at each stage”.He mentioned the claimants had spent nearly £150m on the authorized battle, and have been searching for practically £113m of their prices from Mr Lynch’s property.Mr Goodall additionally mentioned that Mr Lynch’s property shouldn’t be allowed to enchantment towards both the 2022 or 2025 rulings.In written submissions, Richard Hill, the lawyer representing Mr Lynch’s property, mentioned that the $761m in curiosity sought by the claimants was an “extreme sum… primarily based on a flawed evaluation” and that the “legally and economically rational strategy would offer for a materially decrease determine”.The claimants’ place that “they have been the victors on this litigation” was “overly simplistic”, he added.Mr Hill additionally mentioned that Mr Lynch’s property ought to be allowed to enchantment towards the 2 earlier rulings, claiming that the decide “erred in regulation” and that there was a “compelling purpose for permitting the enchantment to be heard”.A spokesperson for the Lynch household mentioned: “At this time’s listening to addresses technical issues that change nothing concerning the underlying substance of the case.”The core details stay that HP’s declare was basically flawed and a wild overstatement.”In a separate case, Mr Lynch was extradited to the US in 2023 to face prison costs, and he was cleared of fraud costs in 2024.He was celebrating being acquitted on his yacht when it sank.