SAN FRANCISCO, June 3 (Reuters) – In a dramatic courtroom showdown, Mike Lynch’s attorneys painted the British tech magnate as a visionary entrepreneur while US prosecutors cast him as a cunning fraudster. Lynch, accused of orchestrating a multi-billion dollar fraud involving Hewlett-Packard’s $11 billion acquisition of his software company, Autonomy, is now at the mercy of the jury’s verdict.
The 2011 acquisition, hailed as one of the most significant deals in British tech history, quickly soured when HP wrote down Autonomy’s value by $8.8 billion within a year. Assistant U.S. Attorney Robert Leach implored jurors to see through Lynch’s façade, arguing that Lynch masterminded the deception that inflated Autonomy’s revenue, reaping £500 million ($640 million) in the process.
“Dr. Lynch had 500 million reasons to defraud HP,” Leach asserted, emphasizing the financial motive behind the alleged fraud.
Lynch and his former finance executive, Stephen Chamberlain, face serious charges of fraud and conspiracy, accused of manipulating financial statements to entice a buyer. Lynch, a Cambridge-educated tech pioneer, took the stand to refute these claims, asserting that HP mismanaged the integration post-acquisition.
Brian Heberlig, Lynch’s defense attorney, countered the prosecution’s narrative, suggesting that Lynch’s testimony revealed fundamental flaws in the government’s case. “It was more than reasonable doubt. It was truth,” Heberlig told the jury, underscoring Lynch’s innocence and strategic brilliance.
In a recent development, U.S. District Judge Charles Breyer dismissed one count of securities fraud against Lynch, but he still faces one count of conspiracy and 14 counts of wire fraud. Prosecutors allege that Lynch and Chamberlain engaged in deceptive practices, including back-dated agreements and round-trip deals to artificially boost Autonomy’s financial health.
The trial, which began in mid-March, featured testimonies from over 30 government witnesses, including former HP CEO Leo Apotheker, who was ousted shortly after the Autonomy deal. Lynch’s defense argued that HP’s haste to secure Autonomy, fearing competition, led to insufficient due diligence.
On the stand, Lynch shifted responsibility for financial decisions to Sushovan Hussain, Autonomy’s then-CFO, who was convicted in 2018 for his role in the scheme and served a five-year prison sentence.
Lynch, once celebrated alongside tech giants like Steve Jobs and Bill Gates, now faces a tarnished legacy as the Autonomy acquisition spiraled into costly legal battles. HP won a civil lawsuit against Lynch and Hussain in London in 2022, with $4 billion in damages still under negotiation.
As the jury prepares to deliberate, the high-profile trial nears its conclusion, potentially sealing the fate of one of the UK’s most influential tech entrepreneurs.
