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Home / Business / HP's lawsuit against Mike Lynch of Autonomy is about to start

HP's lawsuit against Mike Lynch of Autonomy is about to start



After almost eight years of dismay, HP and a founder of the software company Autonomy finally plunge on Monday to a legal showdown of 5.1 billion US dollars.

In a lawsuit that is expected to continue for nine months and contains explosive testimony from key players who have said little or nothing publicly about the case, Mike Lynch's acquisition of Mike Lynch for the enterprise software business Autonomy 2011 will be forensic Examined.

HP has accused Lynch and Sushovan Hussain, the former Chief Financial Officer of Autonomy, of cheating and overemphasizing the company. Lynch and Sushovan deny the allegations, Lynch counters with $ 1

50 million.

Former HP boss Leo Apotheker.
Getty

The original Silicon Valley company was a giant of enterprise and computer software. But technology began to change, and in 2011 the software was "eating the world," as venture capitalist Marc Andreessen put it.

Leo Apotheker, a manager of the German software manufacturer SAP, was commissioned by HP at the end of 2010. The acquisition of Autonomy was at the heart of his strategy to turn HP into a software giant. It did not go off and Apotheker was fired when the deal was closed.

Meg Whitman, eBay's former CEO, took on his first job at the end of 2011. A year later, HP's stock was around $ 15, and the company wrote the $ 8.8 billion Autonomy acquisition.

In 2015, HP filed a lawsuit against Lynch and Hussain at the High Court in London. The trial begins on Monday.

HP claims that Lynch and Hussain teamed up to cook Autonomy's books, causing HP to pay $ 5 billion too much for the company. It alleges that the couple had "committed fraudulent activity while executives at Autonomy" and were blamed for "grave accounting errors, disclosure errors and downright misrepresentations."

Lynch and Hussain deny the allegations, and Lynch counters with $ 150 million for his alleged reputational damage. They said HP's Autonomy management had lost value after the acquisition.

Complicating the London case is the US Department of Justice, which has indicted Lynch in November and charged the businessman with fraud. Lynch has not traveled to the US for the trial and may face extradition.

On Friday, the United States has brought its indictment with new criminal charges, one of which is punishable by a maximum of 25 years in prison. Lynch did not respond immediately to the new allegations, but the timing will only intensify Monday's pressure.

Sushovan Hussain, former CFO of the Autonomy.
Autonomy

The US has already found Hussain guilty of fraud and found him guilty of 16 frauds. Hussain's conviction has been postponed and his detention conditions are preventing him from leaving the United States. Although it is a separate criminal case, the guilty verdict could support HP's case in court.

According to HP's court filings read by Business Insider, Hussain intends to attend the London trial. It is not clear if he can participate via video link. HP has argued that Hussain should give evidence earlier than planned should his sentence result in his imprisonment when it arrives.

Another complication was Christopher "Stopher" Egan, the former CEO of Autonomys US Operations. Egan signed an agreement with US Attorneys in 2017, where he became a cooperating witness and confessed to misconduct.

Egan was to witness HP in the London court case, but according to the register he did not want to testify after his US trial.

Business Insider now understands that Egan could provide evidence in the London trial. It is expected that Lynch and other key figures in HP's history will also be asked to provide evidence. These include Apotheker, the former HP boss who oversaw the deal, and his successor Whitman.

"HPE does not want to comment on an ongoing case right now," said a spokesman for HP.

Lynch spokesman said, "Mike Lynch is pleased to finally have the opportunity to stand trial before HP's charges, and there was no fraud with Autonomy, which is more of a case leading to a dispute over the Differences between Britain's and US accounting systems will focus on the appropriate exercise of corporate judgments in a given context and time, with the knowledge and approval of numerous financial and technical experts and advisers available.

Acquisition botched the purchase of Autonomy and destroyed the company to blame others, and Mike will not be a scapegoat for their mistakes. "


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