Mike Lynch Acquitted in High-Profile Fraud Case Over HP Deal
British tech entrepreneur Mike Lynch, founder of Autonomy, was acquitted of fraud by a jury in San Francisco on Thursday. This verdict marks a significant victory for Lynch, who has faced numerous legal challenges following the troubled $11 billion sale of his company to Hewlett-Packard (HP) in 2011.
Lynch was cleared of all 15 charges, which included one count of conspiracy and 14 counts of wire fraud. Former Autonomy finance executive Stephen Chamberlain, who stood trial alongside Lynch, was also acquitted on the same charges.
Prosecutors had accused Lynch and Chamberlain of inflating Autonomy’s revenue figures to deceive HP, leading to the disastrous acquisition. The deal, which was among the largest in British tech history, quickly turned sour as HP wrote down Autonomy’s value by $8.8 billion within a year of the purchase.
“I am elated with today’s verdict,” Lynch stated. “I look forward to returning to the UK and focusing on what I love most: my family and innovating in my field.”
Abraham Simmons, a spokesperson for the Office of the United States Attorney, commented, “We acknowledge and respect the verdict.”
A Three-Month Trial and High Stakes
The three-month trial saw testimony from over 30 government witnesses, including former HP CEO Leo Apotheker, who was dismissed weeks after the Autonomy deal was completed. Lynch, a Cambridge University alumnus, testified in his defense, arguing that HP mishandled the integration of the two companies.
Prosecutors alleged that Lynch and Chamberlain manipulated Autonomy’s financial statements through back-dated agreements and fabricated contracts. Lynch’s defense team countered that HP had rushed the due diligence process in its eagerness to secure the deal, failing to conduct a thorough review.
Lynch claimed he focused on technological aspects and relied on Autonomy’s then-chief financial officer, Sushovan Hussain, for financial and accounting decisions. Hussain was convicted in 2018 on charges related to the same HP deal and was released from US prison in January after serving a five-year sentence.
Legacy of Innovation and Legal Battles
Lynch transformed groundbreaking research at Cambridge University into Autonomy, which grew into Britain’s largest software company and a FTSE 100 index member. He was highly regarded in academic and scientific circles and advised the British government on technology and innovation.
The acquisition of Autonomy was intended to bolster HP’s software division but instead led to extensive legal disputes. HP largely prevailed in a civil lawsuit against Lynch and Hussain in London in 2022, with the company seeking $4 billion in damages, which remain undecided.
Lynch’s acquittal in the US trial brings a major chapter of this legal saga to a close, allowing him to focus on future ventures and his personal life.
