Wednesday 26 June 2019 12:12 pm

Autonomy founder Mike Lynch to testify in $5bn civil fraud case


Jess Clark is a City A.M. news reporter covering retail and property.

Jess Clark is a City A.M. news reporter covering retail and property.

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British businessman Mike Lynch will testify in court this afternoon in the latest phase of the UK’s largest civil fraud case.

Lynch will give evidence at the High Court in central London today as he faces questioning over an alleged $5bn fraud.

Read more: HP ‘not suing Autonomy US exec to go after Mike Lynch’

Hewlett Packard (HP) alleges that Lynch falsely inflated the revenue figures of his software fim Autonomy before it acquired the firm for £8.2bn  in 2011.

The company is suing the entrepreneur after it was forced to write down the value of the deal shortly afterwards.

Former Autonomy finance chief Sushovan Hussain is also being sued by the tech giant. Both parties deny the allegation and Lynch has launched a counter claim against HP. 

Lynch, who founded Autonomy in 1996, is expected to argue that HP’s mismanagement of Autonomy caused the deal to fail.

The court heard previously that Autonomy was HP’s “unwanted stepchild” and that the company had “failed to follow any coherent integration” for the software firm, leading HP to suffer losses and seek a scapegoat.

Read more: Autonomy trial: Meg Whitman ready to blame ex-HP CEO for failed merger

Lynch also submitted written arguments ahead of the trial, in which he said he took on the role of a “statesman” at the FTSE 100 firm.

However, the claimants say Lynch was a “controlling and demanding individual” who took a close interest in individual deals and would have been aware of any fraudulent activity at Autonomy.

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