Mike Lynch, British tech mogul, was acquitted of fraud charges related to the Autonomy sale to HP.
- Lynch, founder of Autonomy, faced legal issues since the $11 billion sale in 2011.
- The trial lasted three months with Lynch denying all accusations.
- Lynch and former Autonomy executive Stephen Chamberlain were acquitted on all counts.
- This verdict is a significant turning point in the prolonged legal battle.
British tech mogul Mike Lynch has been cleared of fraud charges related to the multi-billion dollar sale of his company Autonomy to Hewlett-Packard (HP). This marks a notable victory for Lynch, who has faced numerous legal challenges since selling his company for $11 billion in 2011.
A jury in San Francisco acquitted Lynch on all 15 charges, including one count of conspiracy and 14 counts of wire fraud. These charges were connected to specific transactions or communications. Similarly, Stephen Chamberlain, a former finance executive at Autonomy who faced the same charges, was also acquitted.
The trial, lasting three months, was the latest chapter in a prolonged legal saga. Prosecutors had accused Lynch and Chamberlain of inflating Autonomy’s revenue through deceptive practices like back-dated agreements and ’round-trip’ deals. Despite these allegations, Lynch maintained his innocence, attributing the financial discrepancies to HP’s mismanagement post-acquisition.
During the trial, over 30 government witnesses testified, including former HP CEO Leo Apotheker, who was dismissed shortly after the sale. Lynch also took the stand, denying any wrongdoing and stating that his focus was on technology while financial decisions were left to then-chief financial officer Sushovan Hussain. Hussain, convicted in 2018 on related charges, served a five-year sentence.
The Autonomy sale was initially seen as one of the largest British tech deals but quickly soured. Within a year, HP wrote down Autonomy’s value by $8.8 billion. Lynch’s legal team argued that HP’s eagerness to outpace competitors led to rushed due diligence before the acquisition.
Lynch, a Cambridge University-educated entrepreneur, transformed ground-breaking research into Autonomy, which became one of Britain’s biggest software companies. However, the acquisition by HP led to extensive legal battles rather than the envisioned synergy in HP’s software business. Though HP won a civil lawsuit against Lynch in London in 2022, damages are still pending, with HP seeking $4 billion.
Mike Lynch’s acquittal marks a pivotal moment in the ongoing legal battles stemming from the Autonomy sale.