By Royal Society uploader
The estate of late tech magnate Mike Lynch and his former business associate Sushovan Hussain have been ordered by the High Court to pay £700 million to Hewlett Packard Enterprise (HPE), following a long-running legal battle over the acquisition of Lynch’s company, Autonomy.
The ruling stems from HPE’s 2011 purchase of Autonomy for $11.1 billion (£7.1 billion at the time). The company accused Lynch, Autonomy’s founder, and Hussain, the firm’s ex-chief financial officer, of deliberately misrepresenting the financial state of the business, leading HPE to overpay.
According to the court, HPE paid significantly more for Autonomy than it would have if the company’s financial health had been accurately presented during negotiations.
While a final figure on damages is still pending, Tuesday’s ruling confirms the court’s support for HPE’s claim. A spokesperson for Lynch revealed that he had prepared a statement on the case before his death last year, calling HPE’s original damages claim of up to $5 billion (£3.7 billion) a “wild overstatement.”
Lynch, 58, and his teenage daughter Hannah were among seven people killed when his luxury yacht, The Bayesian, capsized off the coast of Sicily in August 2024 during a storm. The tragic incident delayed the court’s final judgment.
The presiding judge expressed condolences over Lynch’s death, describing the turn of events as “devastating” and extended “sympathy and deepest condolences” to his family. He also remarked that he “admired” Lynch, despite finding against him.
HPE responded to the decision by stating it looked forward to “the further hearing at which the final amount of HPE’s damages will be determined.”
The legal case centered on HPE’s assertion that Lynch and Hussain fraudulently inflated Autonomy’s value prior to the 2011 acquisition. Just over a year after the deal, HPE wrote down the value of Autonomy by $8.8 billion, citing what it called “serious accounting improprieties.” Lynch reportedly made £500 million from the sale.
Both Lynch and Hussain denied the allegations. Lynch argued that HPE had mismanaged Autonomy after the purchase, claiming the US tech giant had “botched the purchase of Autonomy and destroyed the company.”
In 2018, Hussain was convicted in the United States on fraud and related charges and was sentenced to five years in prison. Meanwhile, a 2022 UK ruling by Mr Justice Hildyard found HPE had “substantially succeeded” in its civil case, but indicated that the firm was unlikely to recover the full $5 billion sought in damages.
Lynch, extradited to the United States in 2023 to face criminal charges, was acquitted of all fraud accusations in 2024. He had been celebrating the verdict aboard his yacht when the fatal accident occurred.
In his posthumously released statement, Lynch maintained that “HPE acquired Autonomy for $11.6 billion and today’s judgment is a view that Autonomy’s actual value was not even 10% below the price [HPE] paid.”
He also criticized the civil case, stating that it “included hearsay evidence from the US and we were never able to question or cross-examine those witnesses.” He contrasted that with the US criminal trial where cross-examination was possible and “a very different story emerged.”
“Why is the English legal system so trusting?” he added.
A further hearing scheduled for November will determine whether Lynch’s estate is allowed to appeal the High Court’s ruling. It will also assess how liability for the damages should be split between Lynch’s estate and Hussain, who reached a settlement with HPE earlier this year.
