HPE to Pursue $4 Billion Claim Against Mike Lynch Estate Following Yacht Death
LONDON – Hewlett Packard Enterprise (HPE) has announced it willcontinue to pursue a $4 billion claim against the estate of Mike Lynch, the former Autonomy CEO who died in a yacht accident last month. The decision comes justover a week after Lynch and his 18-year-old daughter, Hannah, were recovered from the wreckage of the sunken vessel.
HPE wona landmark civil case against Lynch in the UK, alleging that he had fraudulently inflated the value of Autonomy before its acquisition by HPE in 2011. While a judge ruled in HPE’s favor in 2022, the amount of damages to be awarded is still pending.
In a statement released on Monday, HPE said, HPE intends to continue to pursue the litigation process until its conclusion.
The decision has sparked controversy,with many criticizing HPE for seeking compensation from Lynch’s family following the tragedy. While English civil claims automatically transfer to the deceased’s estate, the move has been widely condemned as insensitive and opportunistic.
They are likely to face criticism for continuing to pursue claims against his grieving widow, said Robin Henry, apartner at law firm Collyer Bristow. I think they are trying to mitigate the reputational damage by saying they have a duty to protect HPE shareholders’ interests.
A spokesperson for Lynch’s family declined to comment. The London Times first reported the news.
The case against Lynch was one of thelongest and most expensive trials in British history. In 2022, Judge Robert Hildyard ruled that Lynch had fraudulently inflated the value of Autonomy, stating, One of the tragedies of this case is plain to see: an innovative and groundbreaking product, its designer and the company may forever be associated with fraud.
HPE initially sought $4 billion in damages from Lynch and his former CFO, but the judge indicated that the final award could be significantly lower.
Lynch’s luxury yacht sank off the coast of Sicily during a storm while he was celebrating his acquittal in a US criminal case with a small group of advisors.His wife, Angela Bacares, survived the incident, but his other daughter was not on board.
The decision to pursue the claim against Lynch’s estate has been met with widespread disapproval. Critics argue that HPE’s pursuit of financial gain in the wake of a personal tragedy is ethically questionable and that the companyshould focus on honoring Lynch’s legacy rather than seeking further compensation.
The case is expected to continue in the coming months, with the court likely to determine the final amount of damages owed to HPE. The decision will have significant implications for both HPE and the Lynch family, and it is likely to beclosely watched by the business and legal communities.
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