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Hewlett-Packard Enterprise (HPE) is pursuing a claim of $1.7 billion (£1.3 billion) against the estate of Mike Lynch, who tragically died last year when his yacht capsized. This legal action stems from HP’s 2011 acquisition of Lynch’s technology company, Autonomy. HP alleges that Lynch and Autonomy’s former chief financial officer, Sushovan Hussain, misrepresented the company’s financial condition during the sale.
The dispute dates back to a 2019 trial where Hewlett-Packard accused Lynch of inflating Autonomy’s revenues. This alleged misrepresentation, according to HP, ultimately led to an $8.8 billion write-down in the company’s valuation. In 2022, Mr Justice Hildyard ruled that HP had largely succeeded in its claims but indicated that the damages awarded would likely be significantly less than the $5 billion initially sought by HP.
Earlier this year, the judge determined that HPE incurred losses of approximately £700 million as a result of the Autonomy purchase. Lynch, along with his teenage daughter Hannah, was among seven people who perished when the yacht Bayesian sank off the coast of Sicily during a storm last August.
A hearing underway in London will consider whether Lynch’s estate should be allowed to appeal the previous rulings from 2022 and 2025. Representing HPE, barrister Patrick Goodall argued that Lynch’s estate should be held responsible for the $1.7 billion claim, which includes about $761 million in interest. Goodall described Lynch as having “not only perpetrated an enormous fraud, but lied about it at every stage,” and emphasized that the claimants have incurred nearly £150 million in legal expenses, seeking to recover around £113 million of those costs.
On the other side, Richard Hill, legal counsel for Lynch’s estate, contested the interest amount, calling it “an excessive sum… based on a flawed analysis” and argued that a fair and rational approach would result in a much lower figure. Hill also asserted that the claimants’ depiction of themselves as outright “victors” in the case was “overly simplistic.” He further submitted that the estate should be permitted to appeal the rulings, claiming that the judge made legal errors and that there were “compelling reasons” to hear the appeal.
A spokesperson for the Lynch family commented on the hearing, stating: “Today’s hearing addresses technical matters that change nothing about the underlying substance of the case. The core facts remain that HP’s claim was fundamentally flawed and a wild overstatement.” Meanwhile, in a separate legal matter, Lynch was extradited to the United States in 2023 on criminal charges and was ultimately acquitted of fraud in 2024. At the time of his yacht’s sinking, he had been celebrating his acquittal
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