Hewlett-Packard Enterprise (HPE) has confirmed it will continue to pursue a £3 billion claim against the estate of British tech tycoon Mike Lynch, following his tragic death in a yacht disaster.
Lynch, who passed away on August 19 when his superyacht sank off the coast of Sicily, had been embroiled in a long-running legal battle with HPE over the 2011 sale of his software company, Autonomy.
HPE acquired Autonomy for £8.4 billion after the UK High Court ruled in favor of HPE in 2022, concluding that Lynch had committed fraud by inflating the company’s revenues prior to the sale. After the court’s ruling, HPE requested damages of up to £3 billion; however, the judge stated that the actual amount will likely be “substantially less”.
Due to Lynch’s passing, his widow Angela Bacares is now potentially responsible for any awarded damages. Bacares, who also lost her 18-year-old daughter in the yacht accident, may have to endure this legal battle in spite of requests to HPE to drop the claim made by some, such as Conservative MP Sir David Davis. According to Davis, there would be little financial gain from pursuing the claim and it would be bad for HPE’s reputation.
HPE has declared its intention to see the proceedings through to the end, even in the event of unfavorable publicity. A representative for the business restated that the company was dedicated to seeing the case concluded in accordance with the ruling of the High Court.
The legal dispute dates back over a decade and involves complex allegations of accounting fraud, with Lynch having been cleared of related criminal charges in the United States just two months before his death.
The final ruling on damages is expected later this year, with the possibility that Bacares could inherit the full legal and financial responsibilities of her late husband’s estate.
With input from the Daily Mail, MSN and Fortune.
