In a legal confrontation unfolding in London, Hewlett-Packard (HP) has alleged losses surpassing $4 billion stemming from an alleged deceit orchestrated by the co-founder of British software firm Autonomy, Mike Lynch.
As per Reuters, HP’s legal representatives presented their argument to the court on Monday, accusing Lynch of artificially boosting Autonomy’s value through fraudulent means.
Underlining the scale of the case, HP aims to recover losses through a lawsuit targeting Lynch and Autonomy’s former chief financial officer, Sushovan Hussain.
The technology giant’s acquisition of Autonomy for $11.1 billion in 2011, initially celebrated as one of the UK’s most significant tech deals, turned into turmoil as HP devalued Autonomy’s worth by $8.8 billion within a year.
HP’s legal team contended that Lynch’s purported fraud inflicted considerable financial harm on the company, warranting the pursuit of approximately $4 billion in damages.
However, Lynch, presently confronting criminal charges in the United States linked to the deal, asserts his innocence and refutes any wrongdoing.
His attorney, David Wolfson, rebutted HP’s assertions, proposing that the price HP would have paid for Autonomy would not have substantially differed due to the company’s unique technology and strategic value.
The legal dispute arises from one of the lengthiest civil trials in English legal history, where HP predominantly prevailed in 2022.
Despite the court’s verdict in favour of HP, the determination of damages remains pending, with Lynch intending to seek permission to appeal.
This postponement prolongs the legal saga, casting uncertainty over the resolution of the contentious lawsuit.
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