Estate of deceased yachting tycoon Mike Lynch and former business partner are indebted to HPE for approximately $940 million, as enforced by court ruling following yacht sinking incident.
In a landmark decision, Hewlett Packard Enterprise (HPE) has secured a victory in a long-running fraud dispute with the estate of Mike Lynch, the founder of Autonomy, the software company HPE purchased for approximately $11 billion in 2011. The UK High Court has ordered Lynch's estate to pay HPE damages of about £740 million ($940 million).
The dispute centres around HPE's claim that Autonomy was fraudulently overvalued, leading to an $8.8 billion writedown in 2012. Lynch, who was acquitted of criminal fraud charges in the US in 2024, denied all allegations. The UK Serious Fraud Office ended its investigation in 2015, citing insufficient evidence.
The timeline of events is as follows:
- In 2011, HPE purchased Autonomy for about $11 billion. - Soon after, HPE accused Lynch and others of fraud, claiming they artificially inflated Autonomy's value. - In 2012, HPE suffered a loss of £646 million based on the difference between Autonomy's purchase price and what it would have paid had Autonomy's "true financial position been correctly presented." - In 2018, Sushovan Hussain, the former finance director of Autonomy, was convicted in a US trial of wire fraud and other crimes related to Autonomy's sale and sentenced to five years in prison. - In 2022, the UK High Court ruled mostly in HPE's favour, finding significant inflation of financials. - In July 2025, the UK High Court ordered Lynch’s estate and Hussain (who had settled with HPE in May 2025) to pay HPE damages of about £740 million ($940 million), substantially lower than HPE’s initial $4 billion claim but recognizing significant loss to HPE in the deal. - Lynch died in a yacht accident off Italy in 2024, after which his estate became party to the civil claim.
The civil judgment highlights a distinction from criminal acquittal: Lynch was cleared criminally but held civilly liable as the court found evidence that HPE overpaid due to financial misstatements by Autonomy management including Lynch.
HPE is also owed an additional £51.7 million for "personal claims related to deceit and/or misrepresentation" against Mike Lynch. HPE is owed $47.5 million for other losses related to the Autonomy Corp case.
In a statement written before his death and issued posthumously, Mike Lynch stated that the High Court ruling shows that HPE's original claim was "off the mark by 80%." He also stated that the immense damage to Autonomy was down to HPE's own errors and actions.
A hearing to deal with interest, currency conversion, and whether Lynch's estate can appeal is set for November. The yacht, the Bayesian, sank in a storm off Sicily on August 19, 2022, resulting in the death of Mike Lynch and his daughter, and several others. No new information about the loss Hewlett Packard suffered based on the difference between Autonomy's purchase price and what it would have paid had Autonomy's "true financial position been correctly presented" was provided in this paragraph.
Judge Robert Hildyard expressed his "sympathy and deepest condolences" to Mike Lynch's wife and family. No new information about the amount awarded to Hewlett Packard in the case involving Mike Lynch's company, Autonomy Corp, was provided in this paragraph. Hewlett Packard Enterprise (HPE) had accused Mike Lynch of fraud and conspiracy after buying Autonomy Corp for $11 billion. The UK High Court ruled in favor of Hewlett Packard in a case involving Mike Lynch's company, Autonomy Corp.
- Following the UK High Court's ruling, Hewlett Packard Enterprise (HPE) will receive around £740 million ($940 million) in damages from the estate of Mike Lynch, as a result of the misrepresentation of Autonomy's financials in 2011 when HPE secured the business for approximately $11 billion.
- The dispute between Hewlett Packard Enterprise (HPE) and the estate of Mike Lynch stemmed from allegations of inflated business valuations, leading to an $8.8 billion writedown in 2012, as HPE claimed that Autonomy was fraudulently overvalued.
