In a dramatic conclusion to one of the UK's most contentious corporate legal battles, tech tycoon Mike Lynch has been ordered to pay Hewlett-Packard (HP) a staggering £700m following a High Court ruling on the Autonomy fraud case.
The judgment, delivered in London, solidifies HP's long-standing claim that Lynch and Autonomy's former CFO, Sushovan Hussain, deliberately inflated the company's value before its £8.3bn sale in 2011. The US tech giant alleged it was misled into overpaying by billions.
A Decade-Long Legal Saga
This ruling marks the latest chapter in a 13-year saga that began when HP wrote down Autonomy's value by £5.5bn just a year after acquisition. The case has become emblematic of corporate governance failures and due diligence shortcomings in major tech acquisitions.
Key Findings from the Judgment
- Lynch found liable for fraudulent misrepresentations about Autonomy's financial health
- Court determined HP relied on false information when valuing the acquisition
- Judge rejected Lynch's defence that HP failed to conduct proper due diligence
The £700m award represents one of the largest personal liabilities ever imposed in a UK commercial case. Legal experts suggest this could set a precedent for holding executives personally accountable in major corporate transactions.
What Comes Next?
While this judgment concludes the UK civil case, Lynch still faces potential extradition to the US on criminal fraud charges. His legal team has indicated they will appeal today's decision.
The case has cast a long shadow over Britain's tech sector, raising uncomfortable questions about oversight in high-value acquisitions and the responsibilities of company founders during sales processes.
