Tech entrepreneur Mike Lynch cleared of fraud charges in relation to a Hewlett-Packard transaction.
Mike Lynch, the founder of Autonomy, was declared not guilty by a jury in San Francisco yesterday, in a significant victory for the software entrepreneur who has faced legal issues since the disastrous sale of his company to Hewlett-Packard (HP) in 2011 for $11 billion.
Lynch's legal team and USA prosecutors confirmed that he was cleared of all charges - one count of conspiracy and 14 counts of wire fraud. Stephen Chamberlain, Autonomy's former finance executive, who was standing trial alongside Lynch, was also acquitted on all counts, according to the Lynch representative.
The trial, which revealed that Lynch and Chamberlain supposedly plotted to boost Autonomy's revenue, is the latest development in the protracted legal drama. The Autonomy sale was one of the biggest British tech deals of its time but failed shortly after, with HP slashing Autonomy's worth by $8.8 billion within a year.
"I am thrilled with today's verdict," said Lynch in a statement. "I am excited to return to the UK and reconnect with my family and carry on innovating in my field."
The Office of the United States Attorney spokesperson, Abraham Simmons, commented: "We accept and recognize the verdict."
Cambridge connections
During the three-month trial, the jury heard from more than 30 government witnesses, including Leo Apotheker, the ex-HP CEO who was sacked weeks following the announcement of the Autonomy deal.
Cambridge University graduate, Lynch, testified in his defense, maintaining his innocence and alleging that HP prematurely pushed through the Autonomy acquisition, neglecting proper due diligence.
The prosecution claimed that Lynch and Chamberlain manipulated Autonomy's finances through various means, including backdated agreements and false contracts.
Lynch's lawyers argued in court that HP's eagerness to buy Autonomy ahead of potential rivals forced it to speed up the due diligence process preceding the sale.
On the stand, Lynch testified that he had been preoccupied with technological issues and delegated financial matters and the related decisions to Autonomy's then-chief financial officer, Sushovan Hussain. Hussain, who was separately found guilty in 2018 at a trial in the same court for his role in the HP deal, was released from US prison in January after completing a five-year term.
Lynch built Autonomy from cutting-edge research at Cambridge University and transformed it into the UK's top software company and part of the blue-chip FTSE 100 index. He was respected by academics and scientists and invited to advise the British government on technology and innovation. The Autonomy acquisition was meant to boost HP's software division. Instead, it led to a sequence of acrimonious and costly legal disputes. HP triumphed in the civil case against Lynch and Hussain in London in 2022, although the damages have yet to be determined. The firm is demanding $4 billion.
Read also:
Mike Lynch, known for his successful business in tech, founded Autonomy, a UK's top software company that leveraged cutting-edge research from Cambridge University.
Despite facing legal issues following HP's acquisition of Autonomy for $11 billion in 2011, Mike Lynch showcased his resilience and innovativeness in the tech industry.
