Hewlett Packard Enterprise Co (NYSE:HPE, ETR:2HP) (HP) claimed it incurred over $4 billion in losses due to an alleged fraud by Autonomy's co-founder, Mike Lynch, aimed at inflating the British software firm's value before its acquisition, according to Reuters, reporting from the High Court in London.
HP wants to recover the shortfall from Lynch and Autonomy's former CFO, Sushovan Hussain.
HP acquired Autonomy for $11.1 billion in 2011, marking one of the UK's largest tech deals, only to write down its value by $8.8 billion a year later.
Despite winning its case in 2022, HP faces a reduction in the original claimed damages of $5bn. Meanwhile, Lynch denies any wrongdoing, arguing HP did not suffer any real loss.
His legal team suggests the acquisition price reflected Autonomy's unique technology and HP's strategic goals. Lynch plans to appeal the 2022 verdict, while Hussain, already convicted of fraud in the US, supports Lynch's stance.