UK High Court Orders Mike Lynch's Estate and Former CFO to Pay HPE Over £700 Million in Autonomy Fraud Case

The UK High Court ruled on Tuesday that the estate of British tech tycoon Mike Lynch and his former finance director, Sushovan Hussain, owe Hewlett Packard Enterprise (HPE) over £700 million (approximately $943 million) following a fraud case related to Lynch's software company, Autonomy Corp. The case arose from HPE’s 2011 acquisition of Autonomy for $11 billion, which HPE claims was based on financial misrepresentations by Lynch and Hussain.

The judge, Hildyard, determined that HPE suffered a loss of £646 million due to the difference between Autonomy's purchase price and what would have been paid had the company's true financial position been presented. Additionally, HPE is owed £51.7 million for personal claims related to deceit and/or misrepresentation against Lynch and Hussain, and £47.5 million for other losses.

Sushovan Hussain was convicted in a 2018 U.S. trial of wire fraud and related charges tied to the Autonomy sale and sentenced to five years in prison. Lynch died in August 2024 when his superyacht sank off Sicily during a storm, an incident that delayed the ruling. He and his teenage daughter were among seven people who drowned.

Before his death, Lynch issued a statement contending the ruling showed HPE’s original claim was exaggerated by 80%, describing HPE’s lawsuit as a "wild overstatement" and attributing Autonomy’s commercial problems to HPE’s own errors.

The High Court decision partly upheld a 2022 ruling mostly in favor of HPE, which is also pursuing damages of up to £4 billion in a civil case. A further hearing is scheduled for November 2024 to address interest, currency conversion, and possible appeals by Lynch's estate.

HPE stated it was "pleased that this decision brings us a step closer to the resolution of this dispute" and looks forward to determining the final damages amount. The presiding judge expressed sympathy over Lynch's death and said he "admired" Lynch despite ruling against him.

The UK High Court ruled on Tuesday that the estate of British tech tycoon Mike Lynch and his former finance director, Sushovan Hussain, owe Hewlett Packard Enterprise (HPE) more than £700 million (approximately $943 million) related to a fraud case involving Lynch's software company Autonomy Corp. The ruling comes nearly a year after Lynch died when his superyacht sank off Sicily and months after he was acquitted in a separate US criminal trial.

HPE's claim stemmed from losses suffered due to alleged deceit and misrepresentation in the sale of Autonomy. The court found that HPE suffered a loss of £646 million based on the difference between Autonomy's purchase price and what would have been paid if its true financial status had been accurately represented. Additionally, HPE is owed £51.7 million for personal claims related to deceit or misrepresentation by Lynch and Hussain, and £47.5 million for other losses.

Hussain was convicted in a 2018 US trial for wire fraud and other crimes related to Autonomy's sale and sentenced to five years in prison. HPE is seeking up to £4 billion in damages in a separate civil case in the UK.

HPE expressed satisfaction that the decision brings them closer to fully resolving the dispute and awaits a further hearing scheduled for November to decide on interest, currency conversion, and appeal rights for Lynch's estate.

Before his death, Lynch issued a statement criticizing the ruling, asserting that HPE's original claim was a significant overstatement misleading shareholders and largely due to HPE's own errors and actions. The US tech company HPE had originally purchased Autonomy for $11 billion and alleges fraud and conspiracy in the acquisition.

The court's decision marks a major legal development in the long-running dispute between HPE and the estate of Mike Lynch and clarifies the financial liability connected to the contested sale of Autonomy Corp.