British tech founder Mike Lynch faces fraud allegations related to Autonomy's acquisition by HP

From Investing.com: 2024-06-03 02:35:52

Jurors in the trial of British tech pioneer Mike Lynch are set to hear closing arguments in San Francisco. Lynch denies fraud allegations related to Hewlett-Packard’s $11 billion purchase of his company Autonomy. The acquisition prompted an $8.8 billion write-down by HP within a year.

Lynch and former Autonomy finance executive Stephen Chamberlain face charges of fraud and conspiracy. Prosecutors claim they inflated Autonomy’s revenue through deceptive means. The trial, which began in March, featured testimony from over 30 witnesses, including former HP CEO Leo Apotheker.

HP alleges Lynch and Chamberlain padded Autonomy’s finances with back-dated agreements and “round-trip” deals. Lynch has said he focused on tech issues, leaving financial matters to Autonomy’s CFO Sushovan Hussain. Hussain was convicted in a separate trial in 2018 and served a five-year sentence in U.S. prison.

The Autonomy acquisition was meant to boost HP’s software business but instead led to legal disputes. HP won a civil lawsuit against Lynch and Hussain in London in 2022, although damages are pending. The company is seeking $4 billion from the tech entrepreneurs.



Read more at Investing.com: US criminal trial of British tech founder Mike Lynch to wrap up By Reuters