Hewlett Packard acquire HP Autonomy, a British software company, in 2011 in exchange for a multibillion-dollar fraud case. A year after the transaction, HP accused Autonomy of falsifying its financial records. Furthermore, it had inflated the business’s worth and resulted in significant losses for the US corporation.
HP has filed a $5 billion lawsuit against former Autonomy CEO Mike Lynch and former HP CFO Sushovan Hussain (roughly Rs. 37,500 crores). Judge Robert Hildyard summarises his judgement, saying that Hewlett Packard aka HP and the other claimants had substantially won. In what is the most significant civil fraud trial in British history.
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Later, Hildyard said that they would decide the number of damages based on HP’s assertion that they “artificially inflated Autonomy’s reported revenues, revenue growth and gross margins. That too over a long period.” the two men were charged with fraud.
Hewlett Packard Fraud Case: What More?
Just over a year after the sale, the company announced an $8.8 billion (roughly Rs. 66,000 crores) write-down of the firm’s value. In addition, the UK’s Home Office announced on Friday that Interior Minister Priti Patel had signed an order for the extradition of Lynch to the US for trial on charges related to the transaction.
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The court said that Lynch has the right to challenge the extradition order to the High Court. Lynch has always maintained his innocence. According to Kelwin Nicholls, the entrepreneur’s lawyer, the court’s decision was “disappointing,” and Lynch “intends to appeal”.
Chris Morvillo, another of Lynch’s attorneys, said that his client “strongly denies the charges brought against him in the United States” and that his client “will continue to fight to establish his innocence.” A British citizen named Lynch ran a British business in Britain subject to British laws and rules. So that’s where should settle the matter, Morvillo said.
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By making Lynch “a scapegoat for their failures,” Hewlett Packard was making him “scapegoat for their failures,” Lynch said. When asked about Autonomy’s employment of “a variety” of deceptive devices to enhance or fabricate income, HP lawyer Laurence Rabinowitz said, “a variety.”
He was sentenced to five years in prison by a US court in 2018 after being found guilty of fraud in connection with Autonomy’s sale of the company.
