HP accused of ‘total lack of humanity’ after suing Mike Lynch’s family

A close friend of Mike Lynch has accused US software company Hewlett Packard Enterprise (HPE) of “utter inhumanity” for suing the tech tycoon’s surviving family.

Patrick Jacob said the business had already “started to circle like vultures”, confirming he planned to pursue a £3bn fraud suit against Lynch’s estate. Antonio Neri, HPE’s chief executive, said the company had a “fiduciary duty” to seek damages.

“The chief executive’s recent comments show that HPE has reverted to its old tactics – chasing a man through a relentless media battle and now his widow,” Mr Jacob said.

“Before the bodies were deposited, they had already started circling like vultures, demonstrating a complete lack of humanity. This is nothing short of heartless and distasteful.”

Lynch and his daughter Hannah, 18, were among seven people who died after his superyacht Bayesian sank off the coast of Sicily last month. Lynch’s wife, Angela Bacareș, survived. The couple also have a daughter, Esme.

HPE prosecuted Lynch for fraud in connection with the £7 billion sale of its software company Autonomy to Hewlett Packard, a previous incarnation of the company, in 2011.

While Lynch had been cleared of criminal charges in the US in June as a result of the settlement, HPE had won a civil case at the High Court in 2022. A judge was expected to award damages in the case by the end of the year, with HPE seeking $4. billion (£3 billion).

HPE said this week: “HPE’s intention is to pursue the proceedings to their conclusion.”

Speaking to Bloomberg, Mr Neri said: “Fundamentally, we believe that the things that took place were not in the best interests of the shareholders and we need to see them through.”

Mr. Jacob, who runs the financial advisory firm Anthem Corporate Finance, was a close friend of the Lynch family and visited them while he was awaiting trial in San Francisco. Invoke Capital, Lynch’s investment firm, had nominated him to a board position at the cybersecurity company Darktrace. He served for a year until voters rejected his election in December because of his association with Lynch.

HPE can continue its lawsuit against Mr Lynch’s estate, which will be able to appeal the ruling in 2022 after a decision on damages is made. Mr Justice Hildyard said when he delivered his judgment in 2022 that the damages would be “substantial” but “considerably less than claimed”. HPE initially sought $5 billion in damages — believed to be significantly higher than Lynch’s net worth.

Mr Jacob’s comments came as Poppy Gustafsson, chief executive of Darktrace, announced he would be stepping down as the business prepares for sale.

The story continues

Ms Gustafsson, who co-founded the company and previously worked for Lynch at Autonomy, said it was “the right time to hand over the reins” before the business goes private in a £4.3bn deal.

Jill Popelka, who joined the company earlier this year and took over as the company’s chief operating officer earlier this summer, will become chief executive officer. She has held senior positions at technology companies including Accenture and Snapchat owner Snap.

Darktrace is set to exit the London Stock Exchange after a three-year stint on the market. The company accepted a takeover by private equity firm Thoma Bravo in April.

Lynch was set to get £300m from the sale of the business. He owned 7% of the company in April with Ms Bacares – although they have since sold some of their stake.

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