HP Seeks $1.7bn From Late Tech Entrepreneur Mike Lynch’s Estate Over Autonomy Deal
Hewlett-Packard Enterprise (HPE) is pursuing $1.7 billion from the estate of British tech entrepreneur Mike Lynch, claiming losses linked to its troubled 2011 acquisition of his software company, Autonomy. The demand – which includes more than $760 million in interest – was disclosed at a High Court hearing in London on Tuesday.
Lynch, once hailed as the “UK’s Bill Gates”, died last August when his yacht, Bayesian, capsized during a storm off the coast of Sicily. He and his teenage daughter were among seven victims of the accident.
Long-running dispute resurfaces after Lynch’s death
HPE alleges that Lynch and Autonomy’s former chief financial officer, Sushovan Hussain, misrepresented the company’s financial performance ahead of the $11bn acquisition. In 2019, the company accused Lynch of inflating Autonomy’s revenue, a move HPE says led to an $8.8bn write-down shortly after the deal closed.
In 2022, Mr Justice Hildyard found that HPE had “substantially succeeded” in its civil fraud claim, though he indicated any damages would fall far below the $5bn originally sought. Earlier this year, the judge concluded that HPE suffered losses of around £700m, setting the stage for the latest dispute over compensation and legal costs.
HPE pushes to block appeal
During the hearing, HPE’s barrister Patrick Goodall argued that Lynch’s estate should pay the full $1.7bn and should not be granted permission to appeal the 2022 and 2025 rulings. He described Lynch as having “perpetrated an enormous fraud” and said the tech giant had already spent nearly £150m on the litigation – of which it is seeking about £113m from the estate.
Goodall insisted the estate should not be allowed to reopen issues the court had already decided.
Lynch estate disputes figures, seeks right to appeal
Representing the Lynch estate, barrister Richard Hill pushed back, calling the interest sought by HPE “excessive” and based on a flawed calculation. He argued that the judge “erred in law” in previous rulings and said there was a “compelling reason” for an appeal to be heard.
Hill also rejected HPE’s framing of the court outcomes, saying it was “overly simplistic” to portray the tech firm as the clear victor in the litigation.
A spokesperson for the Lynch family said the hearing centred on technical issues and insisted the “core facts remain that HP’s claim was fundamentally flawed and a wild overstatement.”
A complicated legacy
Separately, Lynch was extradited to the US in 2023 to face criminal fraud charges relating to the Autonomy sale. He was acquitted in 2024 – and was celebrating the verdict aboard his yacht when it sank.
The High Court will now determine whether his estate can proceed with an appeal, a decision that could shape the final chapter of a saga that has stretched more than a decade.
