Hewlett Packard has stated that it will continue its lawsuit against the heirs of the late magnate Michael Lynch.
According to representatives of Hewlett Packard, the company will file a $4 billion lawsuit against the magnate’s estate.
What is the reason for the lawsuit?
The lawsuit stems from a 2011 acquisition of Michael Lynch’s company, Autonomy, by Hewlett Packard. The acquisition, which was initially announced with great fanfare, was valued at $11 billion, making it one of the most expensive acquisitions of a UK company at the time.
However, a year later, Hewlett Packard announced that it had found serious accounting misrepresentations intended to inflate the actual value of Lynch’s company (Autonomy).
Following this, Hewlett Packard filed a lawsuit against Michael Lynch and his former CFO, Sushovan Hussain, for $5 billion.
Legal battles and tragic deaths
In 2022, Hewlett Packard won a civil lawsuit in the UK High Court, although the judge ruled that the damages would be significantly less than $5 billion.
On March 18, 2024, a trial began in San Francisco, United States. The defendants in this case were Michael Lynch and Stephen Chamberlain, former vice president of finance at Autonomy. Lynch was charged with 16 counts of wire fraud, securities fraud, and conspiracy, while Chamberlain faced 15 counts of wire fraud and conspiracy.
On June 6, 2024, Lynch and Chamberlain were acquitted of all charges.
Chamberlain died after being hit by a car while running in Stretham, Cambridgeshire, on August 17, 2024.
In August 2024, Lynch celebrated his acquittal in the San Francisco trial with a cruise on the family superyacht, Bayesian. He was accompanied by his wife, daughter, and nine guests, including two lawyers from his defense team.
In the early morning of August 19, the yacht sank off the coast of Sicily, near the port of Porticello, during a powerful storm, with 22 people on board.
Lynch, his teenage daughter Hannah, four guests, and one crew member died. Lynch’s wife, Angela Bacares, was among the 15 people who were rescued. Lynch’s body was recovered by the Italian Coast Guard on August 22.
Italian authorities opened an investigation and announced that they were considering homicide charges.
To what extent is the inheritance protected from the lawsuit?
The final outcome will depend on the court’s ruling and applicable laws. Although the family is entitled to the inheritance, it is possible that the plaintiff may seek compensation from the inherited assets, if allowed by the applicable rules and if the deceased’s liability is proven.
