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HP pursues $1.7bn claim against Mike Lynch's estate in High Court battle
Hewlett Packard Enterprise (HPE) is demanding $1.7 billion from the estate of British tech entrepreneur Mike Lynch, who died in a yacht accident last year, over allegations of financial misrepresentation during HPE's 2011 acquisition of his firm, Autonomy. The claim, presented in London's High Court this week, includes nearly $761 million in interest and $113 million in legal costs, lawyers for the company confirmed.
Background: A decade-long legal dispute
HPE, formerly Hewlett Packard, acquired Autonomy for $11.1 billion in 2011 but later accused Lynch and Autonomy's ex-CFO, Sushovan Hussain, of inflating the company's revenues. The tech giant subsequently wrote down Autonomy's value by $8.8 billion, citing what it called a "massive accounting fraud."
In 2022, Justice Hildyard ruled that HPE had "substantially succeeded" in its civil claim against Lynch, though he noted the company would likely recover "substantially less" than the $5 billion it initially sought. Earlier this year, the judge determined HPE's losses from the deal totaled roughly £700 million.
Lynch's death and the estate's defense
Lynch, along with his 18-year-old daughter Hannah, died in August 2024 when his yacht, the Bayesian, capsized in a storm off Sicily's coast. Seven passengers and crew perished in the tragedy, which occurred days after Lynch's acquittal on U.S. fraud charges following his 2023 extradition.
The current High Court hearing, which began Tuesday, will determine whether Lynch's estate can appeal the 2022 and 2025 rulings. Richard Hill, representing the estate, argued the $761 million interest demand was "excessive" and based on "flawed analysis," calling HPE's claim of victory "overly simplistic." He asserted the judge had "erred in law" and cited "compelling reasons" for an appeal.
HPE's stance: Fraud, costs, and no appeal
Patrick Goodall, HPE's barrister, countered that Lynch had "perpetrated an enormous fraud and lied about it at every stage," justifying the $1.7 billion claim. He emphasized the company's £150 million legal spend and opposed any appeal, stating the estate should cover costs and damages without further litigation.
"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."
Spokesperson for the Lynch family
Next steps and broader context
The High Court must now decide whether to permit the estate's appeal. The case underscores the protracted fallout from HPE's Autonomy acquisition, which has spanned civil trials in the UK, a U.S. criminal extradition, and Lynch's posthumous legal battles.
Lynch's 2024 acquittal in San Francisco-where prosecutors alleged he defrauded HPE of $11.1 billion-contrasts with the UK civil ruling. His death aboard the Bayesian added a tragic postscript to a saga blending corporate litigation, international extradition, and personal loss.
