Hewlett-Packard Wins Fraud Case vs UK Tech Tycoon Mike Lynch

A British judge found on Friday, Jan. 28, 2022, that tech tycoon Mike Lynch had masterminded an elaborate fraud to inflate the value of his company Autonomy before it was bought by Hewlett-Packard for $11 billion in 2011 in one of the UK's biggest tech deals, Paul Sandle and Kate Horton reported for Reuters.

Photo Insert: Hewlett-Packard

Lynch received a further blow later on Friday when Britain's interior ministry ordered his extradition to the United States to face criminal charges over the deal that carry a maximum prison term of 20 years. Lynch intends to appeal both the judge's finding and the extradition order, his lawyers said.

Finding in HP's favor following a near decade-long battle, Justice Robert Hildyard said the Silicon Valley company had won the majority of its civil case against Lynch although the damages to be announced at a later date would be significantly smaller than the $5 billion demanded.

"The claimants have substantially succeeded in their claims," Hildyard told the High Court, in a one-hour summary of his much longer judgment, following a nine-month trial and a two-year wait for his decision.

The judge said Lynch was aware that practices Autonomy engaged in were dishonest, its revenue recognition was improper and its accounts were false. The court's decision coincided with a Friday deadline for Britain to decide whether or not to extradite Lynch.

Britain's interior ministry said that it had to sign the extradition order if there were no grounds to prohibit the order being made. The criminal charges in the US include wire fraud and securities fraud.

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