HP takes legal helm: Aiming for $4 billion from Mike Lynch’s estate amid yacht tragedy

Hewlett Packard Enterprise (HPE) is pressing ahead with its legal battle to claim up to $4 billion (about R70 billion) in damages from the estate of late British tech entrepreneur Mike Lynch, who passed away last month following the sinking of his yacht off the Italian coast.

HPE is pursuing damages from a civil lawsuit in which it accused Lynch and his former finance director of fraud related to its $11 billion acquisition of Autonomy, his software company. Lynch denied the claims. In 2022, a British court ruled largely in favour of HPE, reports Fox Business.

Tragic losses won’t alter fraud verdict: HPE’s stance

“Lynch’s death is a tragedy, as are the death of others on the ship. However, it doesn’t change what happened. A UK judge ruled in 2022 that the company is a victim of fraud committed by Lynch and his co-defendant Sushovan Hussain. HPE has a responsibility to recover damages for its shareholders,” HPE said in a statement on Thursday.

Six people died during the sinking of the British tech entrepreneur’s yacht last month. Lynch and his daughter Hannah were among the six passengers who tragically lost their lives when the 56-meter luxury yacht sank.

Widow could face liability as HP’s legal battle drags on

Angela Bacares, Lynch’s widow, may now be held responsible for the damages, reports CNN.

Hewlett Packard initially hailed the expensive 2011 acquisition of Lynch’s company but soon regretted it.

On Monday, the company stated it had “largely succeeded” in its civil fraud claims against Lynch and Hussain. “It’s our intention to follow the proceedings through to their conclusion.”

Months before the sinking, Lynch was cleared of fraud and conspiracy charges in a separate US criminal trial.

Lynch, who steadfastly maintained his innocence, expressed feeling “elated” and “grateful” following the June verdict, according to Al Jazeera.

“I’m eager to return to the UK. I will focus on what matters most to me: my family and advancing innovation in my field,” he stated.

Lynch founded Autonomy, a platform designed to help companies extract valuable data from sources like phone calls and emails in 1996.

When Autonomy was acquired in 2011, it marked the largest-ever takeover of a British tech firm on record.

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