Hewlett-Packard could go after Mike Lynch’s family for billions of pounds in damages despite his death – after billionaire was accused of fraud by US tech giant after they purchased his company Autonomy
The grieving family of tech magnate Mike Lynch face a new ordeal after US giant Hewlett-Packard refused to rule out pursuing the family in court.
In 2022, the company won a multibillion-pound High Court claim against Dr Lynch, accusing him of fraud in relation to the purchase of his company Autonomy in 2011.
His death last week, when his £30million superyacht sank in a storm off the coast of Sicily, means his family could be liable for any damages awarded by the court.
But friends of the late businessman, including Conservative MP Sir David Davis, have called for Hewlett-Packard to drop the claim, with one saying it would be a “terrible disgrace” if it were to go ahead.
It is a bitter irony that Dr Lynch, 59, had only just been acquitted in a separate US criminal trial over the Autonomy case when he and his 18-year-old daughter Hannah died on the superyacht Bayesian.
Mike Lynch, better known as ‘Britain’s Bill Gates’, died when his £30million superyacht sank during a violent storm off the coast of Sicily
Hewlett-Packard refused to rule out pursuing Mike Lynch’s family in a lawsuit
British tech magnate Mike Lynch with his wife Angela Bacares, who survived the Bayesian disaster
Now his family, including his wife Angela Bacares, could be faced with a huge court bill in connection with the same incident.
Hewlett-Packard Enterprise (HPE) has won a civil lawsuit alleging that Dr Lynch and Autonomy’s former chief financial officer Sushovan Hussain inflated the Cambridge-based company’s revenues before its £8bn takeover by Hewlett-Packard.
The US firm initially sought a staggering £4bn in damages, although Judge Hildyard ruled the figure would be ‘significantly less’. It is thought to have spent tens of millions of pounds on legal fees.
At a hearing earlier this year to discuss the size of the payout, HPE said it was still seeking £3 billion. Last year it had revenues of £22 billion and profits of £1.5 billion.
The business hardware and services activities were spun off from computer and printer manufacturer HP Inc. following a split in 2015.
The judge is expected to rule on the damages award before the end of the year, and the Mail understands HPE executives will then meet to decide how to proceed with the case.
A source close to the case said: ‘It is with the judge. We are waiting for his response. No decision will be made until he has made his decision.’ A spokesman for HPE, asked whether the company would rule out suing Dr Lynch’s estate for damages, said: ‘We do not feel it is appropriate to comment on legal matters in these tragic circumstances.’
According to Sir David, the Conservative grandee, the company should drop the case as the judge ruled the amount awarded to HP would be “much less than they claimed”.
“I think it would be wise for Hewlett-Packard to drop the case in their own best interests. They’re not going to make a lot of money from it, but they’re making themselves very unpopular with the general public by targeting a survivor.”
Conservative MP Sir David Davis (pictured) has called for Hewlett-Packard’s claim to be dropped
Tech entrepreneur Lynch with his renovated mill on his Suffolk farm
Mr Lynch at his Suffolk farm in 2021 as he fought extradition to the US
The Bayesian storm (undated in the photo) turned into a severe thunderstorm on Monday morning
Hannah Lynch pictured with her father Mike, who had just been acquitted of fraud in the US and was celebrating aboard the Bayesian yacht when they both died
Hannah Lynch, the 18-year-old daughter of tech entrepreneur Mike Lynch
The former Cabinet minister – who supported Dr Lynch in his fight against extradition to the US – said he had lunch with the businessman three weeks ago, after his acquittal, and that they would meet again soon.
It came after the diver who pulled Hannah’s body from the wreck of the superyacht said he was struggling to “control his emotions”.
Italian firefighter Fabio Paoletti, 56, told the Sunday Times: ‘Finding bodies underwater is our job, you get used to it and keep your emotions under control – but finding the girl was different.
“It was an emotional moment because she was so young.”
Mr Paoletti said he had to dodge floating mattresses, tables and electrical cables to reach Hannah’s body, who was alone in her cabin.