TECH

HP Wins Massive UK Fraud Case Over Autonomy Purchase

US tech giant Hewlett Packard won its multibillion-dollar fraud case on Friday over its 2011 purchase of British software company Autonomy.

A year after the deal, HP accused Autonomy of falsifying its accounts, saying it had inflated its value and caused huge losses to the American company when the real situation emerged after the sale of 11.1 billion dollars (about 83,251 crore rupees).

HP sued two executives, Mike Lynch, the British founder of Autonomy, and former chief financial officer Sushovan Hussain, for around $5 billion (about Rs. 37,500 crores).

In a summary of his decision in what is believed to be Britain’s biggest civil fraud trial, Judge Robert Hildyard said HP and the other claimants had “substantially won”.

Hildyard said the damages to be paid will be determined at a later date.

HP claimed the two men had “artificially inflated Autonomy’s reported revenues, revenue growth and gross margins…over an extended period.”

The company announced an $8.8 billion (about Rs 66,000 crore) writedown in the value of the business just over a year after the sale.

Home Secretary Priti Patel on Friday signed an order for Lynch’s extradition to the United States, where he faces separate criminal charges for the sale, the Home Office said in a statement. communicated.

Lynch has the right to ask the High Court to appeal against the extradition order, he added.

Lynch denied any wrongdoing.

A lawyer for the businessman, Kelwin Nicholls, said the court’s decision was “disappointing” and added that Lynch “intends to appeal”.

Another of Lynch’s attorneys, Chris Morvillo, said his client “strongly denies the charges against him in the United States and will continue to fight to establish his innocence.”

Lynch was “a British citizen who ran a British business in Britain, subject to British laws and rules and that’s where the matter should be resolved,” Morvillo said.

Lynch, from Suffolk in the east of England, claimed HP was making him “a scapegoat for their failures”.

HP attorney Laurence Rabinowitz told the court that Autonomy used “a variety” of fraudulent devices to augment or invent revenue.

In 2018, a US court convicted Autonomy’s chief financial officer Hussain of sales fraud and jailed him for five years.


Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Can You Please Take off the Ad Blocker First