HP to pursue US$4 billion damages after death of tech tycoon Mike Lynch
The company risks its reputation as the prospect of pursing damages is likely to be unpopular after the tragedy
HEWLETT Packard Enterprise (HPE) said it intends to pursue the US$4 billion damages claim in London against the estate of the recently deceased British tech tycoon Mike Lynch.
“It is HPE’s intention to follow the proceedings through to their conclusion,” the company said on Monday (Sep 2).
The US company said it planned to collect any damages awarded by a London court. HPE won the British civil case over the collapse of Lynch’s enterprise software provider Autonomy, and is waiting for a judge to decide how much it is owed.
This comes after the bodies of Lynch and his 18-year-old daughter, Hannah, were recovered from the wreck of his sunken yacht.
The decision to move forward puts HPE on a reputational tightrope. While a United Kingdom civil claim automatically ensures that the case passes to the estate of a defendant in the event of a death, the prospect of pursuing the money is likely to be deeply unpopular after the tragedy.
A spokesperson for Lynch’s family declined to comment.
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After one of the longest and most expensive trials in British history, Judge Robert Hildyard ruled in 2022 that Lynch had fraudulently boosted the value of the company.
“One of the tragedies of the case is clear: an innovative and groundbreaking product, its architect and the company will probably always be associated with fraud,” the judge said in the ruling.
In total, HPE was seeking US$4 billion from Lynch and his finance chief, but the judge had cautioned that it was likely to get substantially less than that.
Lynch died after his luxury yacht sank in severe weather off the coast of Sicily. He was celebrating his acquittal from US criminal charges with a small group of advisers when the storm struck.
His wife Angela Bacares managed to escape, while Lynch’s other daughter was not on board at the time. BLOOMBERG
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