Disillusioned tech giant Hewlett Packard has kept a low profile following Mike Lynch’s death last week, attempting to distance itself from the legal battle that likely led to the tech mogul’s premature demise without making a clean break.
However, a public dispute is prone to be raging within the background as HP seeks billions in compensation from Lynch’s estate, as was made clear in last week’s statement on Lynch’s death and the consequence of a successful civil lawsuit.
“We do not consider it appropriate to comment on legal issues under these tragic circumstances. We are saddened by this tragic event and our thoughts are with the families and friends of all the victims,” a spokesman told several media outlets.
HPE, as the corporate is now called, has not ruled out demanding compensation for the failed Autonomy deal.
The Silicon Valley-based company sought $4 billion in damages from Lynch as he celebrated his acquittal on Mediterranean fraud charges last week.
Lynch died together with six other people, including his 18-year-old daughter Hannah Lynch, Morgan Stanley International Chairman Jonathan Bloomer, and Lynch’s essential defense attorney, Clifford Chance attorney Chris Morvillo, when the Bayesian The yacht he boarded sank in a storm.
A litigation expert warns that HP is now “in a dilemma” over whether to implement a judgment on Lynch’s estate, which likely includes his grieving widow and the rightful owner of the BayesianAngela Bacares.
“On a technical level, they would need permission from the court to do this, but it is unlikely that this would be refused,” said Robin Henry, partner and head of dispute resolution services at Collyer Bristow. Assets.
“The real query for HP is whether or not they are prepared to face criticism for now looking for to cater to a grieving family following Lynch’s death under such tragic circumstances.
“HP may ultimately feel that it has no choice but to continue to press for repayment of such a large sum, but the company will likely seek to limit the further proceedings to a dispute over the amount of its claims.”
HP’s aspirations
HP had been fighting a years-long legal battle against Lynch after acquiring Autonomy in 2011 for $11.7 billion.
A 12 months after the deal, the corporate wrote down the worth of its purchase by $8.8 billion and accused Lynch and his allies of inflating the corporate’s value through illegal accounting practices.
Lynch was acquitted of fraud charges in a US criminal trial in June after lawyers, including Morvillo, successfully argued he was not involved in any wrongdoing at the corporate. Autonomy’s former CFO, Sushovan Hussain, recently began a five-year prison sentence after being found guilty of 16 counts of fraud in 2018.
HP says it has not ruled out demanding the $4 billion in damages it’s entitled to. The company had previously won a civil case within the UK, by which a judge ruled that the founding father of Autonomy was probably aware of fraudulent practices in his accounting department.
The judge said that any damages HP can be awarded can be significantly lower than the billions demanded by the group. Lynch, who’s in his final months, spoke of plans to clear his name within the UK.
What is owed to HP?
A British judge is anticipated to come to a decision on HP’s compensation later this 12 months after ruling in HP’s favor in 2022.
There isn’t any confirmed amount of Mike Lynch’s net price on the time of his death, but it surely is unlikely that he had the funds requested by HP.
Lynch is alleged to have earned £500 million (almost $800 million on the time) from the sale of Autonomy in 2011.
A 12 months later, he founded the VC fund Invoke Capital, with which he supported startups reminiscent of Darktrace and Luminance.
The late tech mogul’s estate held a 3% stake in Darktrace on the time of his death, price about $159 million. The British cybersecurity company, which has close ties to Autonomy through its leadership team and early funding, is the topic of a $5.3 billion acquisition by U.S. private equity giant Thoma Bravo.
Oliver Embley, a partner at Wedlake Bell, points out that the executors of Lynch’s estate face a dilemma of their very own. They cannot administer his estate until a court case or appeal is concluded, lengthening his family’s wait for inheritance.
PR nightmare
If HP desires to recuperate damages, the defendant’s name could have to be modified from Lynch to that of the executor of the estate. This will likely be Bacares.
However, several individuals who sympathize with the late tech mogul and his grieving widow warn that the incident could turn right into a PR disaster for the corporate.
David Davis, a Conservative MP and former British Brexit minister who was friendly with Lynch, urged HP to drop the lawsuit since it was unlikely to satisfy the $4 billion mark demanded.
“I think the smartest thing for Hewlett-Packard to do would be to drop the case in their own interest, because while they’re not going to make a lot of money, they’re going to make themselves very unpopular with the general public by using a grieving family as a model,” Davis told the Daily Mail.
An HP representative didn’t immediately reply to a request for comment.
