American tech giant Hewlett Packard Enterprise (HP) is pursuing a colossal £1.5 billion claim from the estate of Mike Lynch, more than a year after the British tech tycoon tragically died in the sinking of the Bayesian superyacht. Lawyers for HP informed the High Court on Tuesday that the firm is seeking the 10-figure sum, equivalent to $1.8 billion USD, relating to its controversial acquisition of Lynch's company, Autonomy.
The Multi-Billion Pound Acquisition and Subsequent Dispute
HP purchased the British tech firm Autonomy for £8.37 billion in 2011, a move intended to pivot the company from hardware towards software. However, within a year, Autonomy's value had plummeted to £6.7 billion. The American company has long accused Autonomy's chief financial officer, Sushovan Hussain, of artificially inflating the firm's value prior to the takeover. This led HP to initiate a massive £3.8 billion lawsuit against both Lynch and Hussain in 2015.
The High Court eventually ruled in HP's favour, though a judge indicated the damages would be 'considerably less' than initially sought. In a pivotal June 2024 ruling, it was determined that HP suffered losses of nearly £698 million, asserting it would have paid a lower price for Autonomy had it been aware of the company's 'true financial position'. Court filings now show HP is claiming £1.36 billion, which includes interest and accounts for prior settlements.
Legal Challenges from the Lynch Estate
Lawyers representing Mike Lynch's estate are seeking to appeal a 2022 ruling that found the late entrepreneur liable. They have argued that the £579 million in interest HP is claiming constitutes 'an excessive sum'. Furthermore, they highlighted that HP has filed a separate lawsuit suggesting the 'estate may be insolvent'. A spokesperson for Lynch's family maintained a defiant stance, stating: 'The core facts remain that HP's claim was fundamentally flawed and a wild overstatement.'
This legal battle continues despite Lynch's acquittal of related criminal charges in the United States on June 6, 2024. Throughout the ordeal, Lynch consistently maintained his innocence, contending that HP's failures in integrating Autonomy were to blame for the deal's poor performance.
The Bayesian Yacht Tragedy
The claim against Lynch's estate is shadowed by the profound human tragedy of his death. Mike Lynch, 59, and his 18-year-old daughter Hannah were among seven people who died when the Bayesian superyacht sank during a storm off the coast of Sicily on August 19, 2024. The vessel was reportedly celebrating Lynch's recent legal acquittal.
In a heartbreaking account given to investigators, Lynch's wife, Angela Bacares, revealed that her husband's final words to her were, 'What's the time?' after they were awoken by the ship's movement. She told him it was approximately 4:03am and went to the deck to speak with the crew, a decision that ultimately saved her life. Just six minutes later, a violent downburst struck the yacht, and it was completely submerged by 4:19am.
An interim report from British investigators placed blame on 'extreme wind' that knocked the vessel over in under 15 seconds, preventing recovery. The report confirmed wind speeds exceeded 70 knots. The captain, James Cutfield, along with engineer Tim Parker Eaton and nightwatchman Matthew Griffiths, are under formal investigation for manslaughter and causing a disaster; all three deny the allegations.
The other victims of the sinking were lawyer Chris Morvillo and his wife Neda, banker Jonathan Bloomer and his wife Judy, and the yacht's chef, Recaldo Thomas. Nine crew members and six other guests were rescued.
