• The UK High Court has ordered the estate of late tech billionaire Mike Lynch and his former partner to pay £740 million to Hewlett-Packard Enterprise over the fraudulent sale of Autonomy in 2011.
• The ruling may bankrupt Lynch’s estate, which is worth less than the awarded damages, and comes despite previous U.S. acquittals related to the case.

The long-running legal battle between Hewlett Packard Enterprise (HPE) and the late tech mogul Mike Lynch reached a dramatic climax this week, as the UK High Court ruled Lynch’s estate and former Autonomy CFO Sushovan Hussain must pay £740 million in damages. The decision delivers a substantial victory to HPE over its disastrous $11.7 billion acquisition of Autonomy in 2011, marking one of the largest tech litigation outcomes in UK history.

Mr Justice Hildyard, delivering his final judgment on Tuesday, said HPE had been misled by Autonomy’s financial misrepresentations, confirming findings first made in 2022 that the company’s

true financial position and performance had not been properly and accurately disclosed.

While HPE had initially sought at least $4.55 billion in damages, the judge criticized that figure as “substantially exaggerated” and not supported by detailed analysis.

The ruling could have dire financial consequences for Lynch’s estate, which is estimated to be worth around £500 million, significantly less than the awarded damages. If the ruling stands, the estate could face bankruptcy, according to sources close to the matter. The Lynch family is reportedly considering an appeal.

Lynch, a prominent British entrepreneur once hailed as the UK’s answer to Steve Jobs, tragically died in a yacht accident off the coast of Sicily last year while celebrating his acquittal in a related U.S. criminal trial. He was 59. The accident claimed the lives of Lynch, his 18-year-old daughter, and five others. His wife, Angela Bacares, and 14 others survived.

HPE CEO Antonio Neri defended the company’s decision to pursue the civil case in the UK, calling it “difficult” but necessary to protect shareholders after HP took an $8.8 billion writedown following the Autonomy deal. The case centered on allegations that Autonomy executives engaged in a “fraudulent acceleration of revenue at the expense of future revenue flows.”

Still, the ruling was not without criticism. In a statement prepared before his death, Lynch accused HPE of scapegoating and misleading shareholders, arguing that the civil case relied on hearsay evidence from the U.S. and lacked proper cross-examination.

When in the U.S. criminal trial we were able to cross-examine the relevant witnesses, a very different story emerged,

he wrote.

HPE has already reached a separate settlement with Hussain for an undisclosed sum and welcomed the ruling as a major step toward resolving the long-running dispute. The final amount of damages, including interest, will be determined in a follow-up hearing.