The UK software company Autonomy’s co-founder, Mike Lynch, also known as “Britain’s Bill Gates,” faces several allegations today in San Francisco over the accusation of defrauding Hewlett-Packard in the $11.1 billion sale of Autonomy.
Among the accusations against him are artificially inflating the software firm’s sales, misleading auditors, analysts, and regulators, and intimidating individuals who raised concerns before its purchase by Hewlett-Packard in 2011.
Stephen Chamberlain’s involvement
Along with Lynch, his former fiancé executive Stephen Chamberlain also faces federal prosecution for inflating the company’s revenue in 2009; prosecutors state that this is the reason behind HP’s catastrophic acquisition of the company in 2011.
Consequences of HP’s acquisition of Autonomy
HP purchased Autonomy for $11.1 billion to boost its software business. However, after a year, the actual value of the acquisition was revealed to be $8.8 billion.
A federal grand jury indicted Lynch in 2019, charging him with 17 counts of wire and securities fraud and conspiracy.
Mike Lynch’s defense
Lynch pleads not guilty and denies all allegations of wrongdoing. If found guilty, he might face a conviction of up to 25 years. He has contended that Autonomy’s underperformance stemmed from the mismanagement of HP, instead of fraud prior to HP’s acquisition.
He spent the entirety of last year preparing for trial while under house arrest. In May 2023, the US extradited Mike Lynch from the UK.
Lynch is now mandated to wear a GPS ankle tag after being put under house arrest, having posted a $100 million bond while being under constant monitoring by armed guards. He was only allowed to leave his San Francisco house between 9 am and 9 pm every day in November.
This article first appeared on Invezz.com
