Mike Lynch was a scapegoat after HP botched its acquisition of Autonomy, defence says

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Mike Lynch was a scapegoat after HP botched its acquisition of Autonomy, defence says GlobeBusiness

HENRY NICHOLLS/Reuters

Lynch denies any wrongdoing and says HP’s mismanagement was responsible for the failure of the acquisition. Hussain also denies any wrongdoing.HP wrote down the value of Autonomy by $8.8-billion, saying it had uncovered serious accounting improprieties. HP is suing Lynch and Hussain for $5-billion of that amount making the case Britain’s biggest-ever fraud trial.

“All the deals now attacked were real commercial deals with real counterparties. The suggestion that Dr Lynch was in the business of conning HP is unreal,” he told London’s High Court.Lynch also faces criminal fraud charges in the United States, which carry a maximum term of 20 years. Hussain has been convicted of fraud in a U.S. case related to the deal.

Autonomy had engaged in “revenue-pumping” by encouraging customers to buy its products in exchange for buying goods from them that it did not need, restructuring deals to produce upfront license fees, and covertly selling pure hardware not even programmed with its software at a loss, Rabinowitz said.Lynch’s lawyer told the court that it was absurd to think the 53-year-old was making detailed, day-to-day accounting decisions.

 

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