The Absent Tech Magnate
Innovative tech tycoon Mike Lynch was aboard a pricey yacht that sunk off Palermo's shores. He's yet to be located.
British tech titan Mike Lynch was sailing on the yacht that went under near Sicily's coast. Reports suggest he was the yacht's owner, nicknamed "Bayesian". According to "The Telegraph", his spouse was amongst those rescued. Unfortunately, one crew member lost their life, and several passengers, including Lynch, remain missing.
The vessel had moored close to the island when it was swept away by a massive storm and sank. Divers are currently scouring the ocean depths of around 50 meters, where the wreckage lies, in search of the missing passengers, believed to be trapped within their cabins.
At 59, Lynch was widely regarded as the 'British Bill Gates'. This summer, he experienced an unexpected court victory, according to reports. The legal battle stemmed from the sale of his company, Autonomy, to HP for 11 billion dollars in 2011.
HP lauded the acquisition of enterprise software Autonomy as a significant achievement. However, the transaction soon turned into a disaster. A year post-acquisition, HP's then CEO, Meg Whitman, accused Lynch and other Autonomy executives of deliberately inflating the company's revenues. HP subsequently incurred billions in losses and terminated Lynch, who still held the CEO position for Autonomy. Lynch defended himself, asserting his innocence.
HP pursued legal action against the entrepreneur, leading to a protracted legal battle with an eventual extradition to America for trial on accounting fraud charges. However, last June, he was cleared by a jury. This result was unexpected given that the CFO of Autonomy had earlier been found guilty by a different jury and handed a 5-year sentence.
Of course, the US acquittal did not resolve all of Lynch's legal uncertainties. About two years ago, HP emerged victorious in a civil lawsuit against him in London. They are seeking a substantial 4 billion dollars in damages. However, the exact amount HP will recover is yet to be determined. Furthermore, Lynch has announced his intention to challenge the London verdict.
The legal battle surrounding Mike Lynch's involvement in the sale of Autonomy to HP involved allegations of inflated revenues and accounting fraud. Despite HP's protracted legal pursuit, a jury in the US cleared Lynch of these charges last June.
The US court's judgments in favor of Lynch have been met with mixed reactions. While a jury exonerated him from accounting fraud charges, Harry Wilson, the ex-CFO of Autonomy, served a five-year sentence for similar offenses.
