HP confirms it will sue bereaved family of Mike Lynch for $4 billion

Hewlett Packard has confirmed it will continue to pursue the family of Mike Lynch for up to $4 billion as it seeks to end a 13-year legal battle.

The Silicon Valley tech group has been at odds with Lynch since 2011, when its $11.7 billion acquisition of his Autonomy group went sour. Hewlett Packard Enterprise (HPE) wrote down the value of the deal at $8.8 billion, citing “accounting irregularities.”

HPE, formerly known as HP, won a civil case against Lynch in the UK in 2022 after a judge ruled that he was likely aware of accounting fraud at the company.

He was acquitted of fraud charges in a US criminal trial in June and planned to use that verdict to challenge the civil ruling.

However, Lynch predeceased his wife, Angela Bacares Bayesian superyacht in August after the boat ran into a storm. Bacares is now expected to inherit her late husband’s battle with the tech group.

There was speculation that HPE would be dissuaded from pursuing Lynch’s family for damages because of the negative publicity such a move might create.

Robin Henry, partner and head of dispute resolution services at Collyer Bristow, said wealth that HPE was stuck “on the horns of a dilemma” over whether it was willing to face criticism for continuing the proceedings.

However, HPE has now confirmed that it will continue with the final stages of the process.

“In 2022, an English High Court judge ruled that HPE had substantially succeeded in its civil fraud claims against Dr Lynch and Mr Hussain,” an HPE spokesman said. wealth.

“A damages hearing was held in February 2024 and the judge’s decision on the damages owed to HPE will be forthcoming in due course. It is HPE’s intention to follow the proceedings through to their conclusion.”

After ruling in favor of HPE in the UK civil suit, the judge indicated that the damages would be considerably less than the $4 billion sought by HPE.

The total value of Lynch’s estate is unknown, but it is not likely to approach $4 billion. It reportedly raised £500 million (then about $800 million) for the Autonomy deal. He founded venture capital fund Invoke Capital in 2012 and owned a 3% stake in UK cyber security group Darktrace at the time of his death.

As a US-listed company, HPE has a fiduciary duty to act in the best interests of its shareholders. The company will be on the lookout for this after being sued by shareholders following its Autonomy acquisition.

The process of pursuing the family of a defendant after his death is a macabre subject, but from a legal point of view, it is very simple.

“Following the tragic death of Mike Lynch, his executors are ‘stepping in’,” said Oliver Embley, partner at Wedlake Bell. wealth last week.

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“In the United Kingdom, all actions at law against a person survive against his estate after his death. Any decision already made, as in HPE’s High Court application against Mr Lynch, is binding on his estate.”

It means Bacares, grieving both Lynch and their 18-year-old daughter Hannah, will likely take the wheel when the judge returns to determine damages later this year.

This story was originally featured on Fortune.com