In a significant victory for British tech entrepreneur Mike Lynch, a jury in San Francisco acquitted him of fraud charges related to the sale of his company Autonomy to Hewlett-Packard (HP) for $11 billion in 2011.
Lynch, the founder of Autonomy, was cleared of all 15 charges, including one count of conspiracy and 14 counts of wire fraud. Former Autonomy finance executive Stephen Chamberlain, who faced the same charges, was also acquitted.
The trial, spanning three months, marked the latest development in a legal saga stemming from the ill-fated Autonomy deal. HP’s acquisition of Autonomy quickly soured, resulting in an $8.8 billion write-down within a year.
Following the verdict, Lynch expressed his relief and eagerness to return to the UK to focus on his family and innovation endeavors. The trial featured testimony from over 30 witnesses, including former HP CEO Leo Apotheker.
Lynch, who holds degrees from Cambridge University, defended himself during the trial, refuting allegations of financial misconduct and placing blame on HP for mishandling the integration process.
Prosecutors had accused Lynch and Chamberlain of inflating Autonomy’s revenue through fraudulent means, including back-dated agreements and fake contracts. However, Lynch’s defense argued that HP rushed the acquisition without proper due diligence.
Sushovan Hussain, Autonomy’s former CFO, was separately convicted in 2018 on charges related to the HP deal. Lynch maintained that financial decisions were entrusted to Hussain.
Lynch’s journey from groundbreaking research at Cambridge University to founding Autonomy, Britain’s leading software company, had once drawn praise from academics and government officials. However, the Autonomy acquisition led to a series of legal battles, including a civil lawsuit in London where HP prevailed, albeit damages are yet to be determined.
The outcome of Lynch’s trial marks a pivotal moment in his legal battle with HP, signifying a potential turning point in a protracted dispute that has reverberated across the tech industry.
