HP Accuses Autonomy Founder Michael Lynch of Fraud, Files Lawsuit
The Guardian reports that Hewlett-Packard has filed a lawsuit against Autonomy founder and former chief executive Michael Lynch, accusing Lynch of fraud. HP filed the lawsuit on August 4th; it also said it would sue Autonomy’s former financial officer Sushovan Hussain.
According to The Guardian:
“Hussain is seeking to block HP’s settlement of three shareholder lawsuits over its troubled purchase of the British software company.
Hussain is trying to block the settlement, saying HP officials were wrongly absolved in the ill-fated acquisition of Autonomy for $11.1bn (£6.6bn) in 2011. HP wrote down Autonomy’s value by $8.8bn (£5.2bn) a year later and accused Autonomy officials of accounting fraud, which those executives have denied.
In the settlement, shareholders had agreed to end efforts to force current and former HP officials, including chief executive Meg Whitman, to pay damages to HP over its Autonomy purchase.”
Autonomy has denied the allegations: “This breathless ranting from HP is the sort of personal smear we’ve come to expect. As the emotional outbursts go up, the access to facts seems to go down. Meg Whitman is buying off a bunch of lawyers so she doesn’t have to answer charges of incompetence and misdirection in front of a judge and jury.”
Read the entire story here.