Mike Lynch, once celebrated as Britain’s version of Steve Jobs, is heading to trial in California before a U.S. jury. The trial revolves around accusations that Lynch and former finance executive Stephen Chamberlain misled Hewlett-Packard (HP) during the $11 billion purchase of their software company, Autonomy.
Federal prosecutors in San Francisco claim that Lynch and Chamberlain artificially inflated Autonomy’s revenue from 2009, leading to HP’s purchase in 2011. This acquisition caused significant financial losses for HP, including an $8.8 billion write-down and the CEO’s dismissal.
Lynch’s legal troubles began over a decade ago, with a London civil lawsuit in 2022 where HP won substantial damages of $4 billion. Chamberlain, separately convicted in 2018, faces charges alongside Lynch in the U.S.
Despite fighting extradition, Lynch was brought to the U.S. after a British High Court decision. U.S. District Judge Charles Breyer granted Lynch bail secured by a $100 million bond, confining him to a San Francisco home under 24-hour guard.
Mike Lynch, founder of Invoke Capital Partners, pauses during a Bloomberg Television interview in London, U.K. (Via Devon Simmons/Shutterstock)
Prosecutors claim Lynch and Chamberlain used fraudulent practices like backdated agreements and fake contracts to boost Autonomy’s financial status. The trial, expected to continue until late May, might include testimony from former HP CEO Leo Apotheker.
Lynch’s defense team hints he might testify, facing 16 counts of fraud and conspiracy, with Chamberlain facing 15. Both maintain their innocence, needing a unanimous jury verdict for acquittal.
While former Autonomy CFO Sushovan Hussain was convicted in 2018, a British court ruling in 2022 largely favored HP’s claims against Lynch.
The trial highlights the legal showdown between Lynch and HP, revealing the intricacies of corporate acquisitions and the legal consequences of alleged fraud in the tech sector.
