In a highly anticipated verdict, UK entrepreneur Mike Lynch has been cleared of all charges by a US jury in the high-profile fraud case surrounding the sale of his software company, Autonomy, to Hewlett-Packard (HP) in 2011.
After being extradited to the United States to face trial just over a year ago, Dr Lynch and former finance executive Stephen Chamberlain were both acquitted of conspiracy and attempted fraud charges related to the £8.3bn sale to HP. This deal has since been the subject of costly legal action.
The news of Dr Lynch’s acquittal comes as the latest development in the ongoing legal battle between HP and Autonomy. In 2012, HP wrote down £5.5bn from Autonomy’s value, claiming that revenue streams had been inflated. However, Dr Lynch has consistently denied any wrongdoing and has maintained his innocence throughout the trial.
During the trial, Dr Lynch took to the witness stand to argue that HP rushed the deal, did not fully understand what it was buying, and failed to conduct thorough due diligence. The acquisition was initially investigated by the UK’s Serious Fraud Office, but the probe was dropped in 2015 while US prosecutors continued their own inquiry.
Shortly after the verdict was announced, HP released a statement confirming that Autonomy’s former chief financial officer, Sushovan Hussain, had been convicted on similar charges in 2018. However, Hussain has since been released from prison.
HP had previously won a civil lawsuit against Dr Lynch and Hussain in London, with damages being delayed pending the outcome of the criminal trial in the US. The technology giant is seeking more than £3bn in damages.
As of now, none of the parties involved in the case have commented on the California jury’s decisions. The verdict has been met with mixed reactions, with some celebrating Dr Lynch’s acquittal while others expressing disappointment. The case has drawn significant attention and has been closely followed by the business community.
