Mike Lynch, co-founder of the British software company Autonomy, is accused of artificially inflating the revenues of the software company; deceiving auditors, analysts, and regulatory authorities; and intimidating individuals who raised concerns before it was acquired by Hewlett-Packard in 2011.
He has pleaded not guilty and has consistently denied allegations of misconduct. If convicted, he faces up to 25 years in prison.
HP acquired Autonomy in an $11.1 billion (GBP 8.72 billion) deal to boost its software business. However, barely a year later, the company wrote down the value of the acquisition by $8.8 billion, alleging “serious accounting improprieties, disclosure failures, and outright misrepresentations” within the company.
Lynch was indicted by a federal grand jury in 2019. He faces 17 charges of wire fraud, securities fraud, and conspiracy.
Lynch had previously been praised for his achievements. He was awarded an OBE (Order of the British Empire) in 2006 for services to enterprise and appointed to the Science and Technology Council by then-Prime Minister David Cameron in 2011. He also served on the board of the BBC and founded an investment firm that supported Darktrace, the cybersecurity company.
For years, Lynch argued that Autonomy’s poor performance at HP was due to mismanagement by the new owner, not fraud before the acquisition. He spent much of the past year under house arrest preparing for the trial.
Lynch was extradited from the UK to the United States in May of last year. After posting $100 million bail, he was required to wear a GPS ankle monitor and be under constant surveillance by armed guards.
Only in November was he allowed to leave the lavish estate in San Francisco he had used as a base, albeit under strict conditions, between 9 a.m. and 9 p.m. daily.
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