2024-03-18 12:02:23 Eastern Standard Time
Mike Lynch, co-founder of British software company Autonomy and also known as “Britain's Bill Gates,” was accused of defrauding Hewlett-Packard in Autonomy's $11.1 billion sale today in San Francisco. is facing multiple charges.
Among the charges against him: artificially inflating the software company's revenue, misleading auditors, analysts and regulators, and raising concerns before it was acquired by Hewlett-Packard in 2011. Examples include threatening individuals who have committed crimes.
Stephen Chamberlain's involvement
Along with Mr. Lynch, his former fiancée, executive Stephen Chamberlain, also faces federal charges for inflating the company's profits in 2009. Prosecutors say this was behind HP's disastrous acquisition of the company in 2011.
Consequences of HP's acquisition of Autonomy
HP acquired Autonomy for $11.1 billion to strengthen its software business. However, a year later, it was revealed that the actual purchase price was $8.8 billion.
A federal grand jury indicted Lynch in 2019 on 17 counts of wire fraud, securities fraud and conspiracy.
mike lynch defense
Lynch maintains his innocence and denies all allegations of wrongdoing. If he is convicted, he could be sentenced to up to 25 years. He argued that Autonomy's poor performance was due to HP's mismanagement, not to any wrongdoing that took place before the HP acquisition.
He spent all of last year preparing for trial under house arrest. In May 2023, the United States extradited Mike Lynch from the United Kingdom.
Lynch, who posted $100 million bail and was under constant surveillance by armed guards, was placed under house arrest and required to wear a GPS tag on his ankle. In November, he was only allowed to leave his San Francisco home between 9 a.m. and 9 p.m. every day.
Trial begins after Mike Lynch fraud case: US court investigates British tech tycoon's case appeared first on Invezz
