The estate of Mike Lynch, who passed away a year ago when his yacht sank near Sicily, along with his business associate, must pay Hewlett-Packard over £700 million, a court has ruled.
The American tech firm had pursued damages of up to $4.55 billion (£3.37 billion) from the late entrepreneur’s estate. Lynch, once compared to Microsoft’s Bill Gates, was involved in the contentious acquisition of his software firm, Autonomy.
Lynch’s estate is estimated at £500 million, meaning the required payment could leave it insolvent.
He and six others, including his 18-year-old daughter Hannah, died during a trip celebrating his acquittal in a U.S. fraud case tied to HP’s $11 billion purchase of Autonomy in 2011.
However, in 2022, HP won a civil fraud case in London’s high court against Lynch and his former finance director, Sushovan Hussain. The judge ruled that the company had been misled into overpaying for Autonomy.
In Tuesday’s ruling, the judge determined HP’s losses exceeded £646 million, reflecting the gap between the purchase price and what would have been paid had Autonomy’s financial state been accurately presented.
"Autonomy’s finances were not properly disclosed," the judge stated. "Had they been, HP would not have proceeded at the agreed price."
Additionally, HP was awarded £51.7 million for claims of deceit and misrepresentation against Lynch and Hussain.
The judge acknowledged that HP’s initial demand was inflated, stating there was merit in Lynch’s argument that the claim was exaggerated.
Lynch had planned to challenge the 2022 ruling, but the process was delayed pending Tuesday’s damages decision.
A representative for Lynch’s family said they may appeal, noting the ruling confirmed HP’s original $5 billion claim was overstated by 80%.
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