HP Wins Reduced Compensation in Autonomy Case, Total Now $944M
A High Court ruling has significantly reduced the compensation Hewlett Packard (HP) can claim from the estate of the late Mike Lynch and his former business partner, Sushovan Hussain, following HP's acquisition of their British software firm Autonomy. The court ruled that HP would have paid £23 per share for Autonomy, not the £25.50 it actually paid under David Lynch's leadership.
Judge Robert Hildyard, in his recent ruling, stated that HP's initial claim of $5 billion was 'always substantially exaggerated'. This decision comes after a 2022 ruling in HP's favor, but with the judge indicating that HP would receive 'considerably less' than its initial claim.
Lynch, once dubbed 'Britain's answer to Bill Gates', has maintained his innocence throughout the case and intended to appeal the 2022 ruling. However, HP is now entitled to an additional $47.5 million for losses suffered by Autonomy group companies. The total amount HP is now owed stands at $944 million, reflecting the difference between the price it paid for Autonomy and what it would have paid had it known the company's true financial position under Lynch's autonomy.
A further hearing is scheduled for November to discuss any applications for permission to appeal and how the damages will be divided between Lynch's estate and Hussain. HP's acquisition of Autonomy in 2011 for $11.1 billion has been a contentious issue, with HP accusing Lynch and Hussain of masterminding a fraud to inflate Autonomy's value under Lynch's leadership.
