Hewlett Packard (HP) has officially confirmed its intent to continue its pursuit of Mike Lynch’s family for up to $4 billion, marking a persistent effort to conclude a 13-year legal dispute. This decision underscores HP’s determination to seek damages related to its contentious acquisition of Autonomy, a company founded by Mike Lynch.
The roots of this protracted legal battle trace back to 2011 when HP acquired Lynch’s Autonomy for $11.7 billion. However, the deal quickly turned problematic for the Silicon Valley tech giant. HP subsequently wrote down the value of the acquisition by a staggering $8.8 billion, citing significant “accounting irregularities” within Autonomy prior to the acquisition. This massive write-down ignited a fierce legal confrontation between HP and Mike Lynch, a dispute that now extends to the Mike Lynch Family.
In 2022, HP achieved a significant victory in a UK civil trial against Lynch. The judge in the case ruled in favor of HP, suggesting that Lynch was likely aware of accounting fraud at Autonomy. Despite this civil ruling, Mike Lynch was acquitted of fraud charges in a U.S. criminal trial in June. He had planned to leverage this acquittal to appeal the UK civil court’s decision. However, these plans were tragically cut short by Lynch’s death in August. He passed away on his superyacht Bayesian during a storm, leaving his wife, Angela Bacares, to inherit not only his estate but also his ongoing legal battles, including the contentious lawsuit with HP, now directly involving the mike lynch family.
Following Mike Lynch’s death, speculation arose regarding whether HP would reconsider pursuing his family for damages. The potential negative publicity associated with pursuing a grieving family was a significant consideration. Robin Henry, a partner at Collyer Bristow, noted to Fortune the difficult position HP found itself in, weighing the financial motivations against potential public relations fallout. The question was whether HP would be willing to face criticism for continuing the proceedings against the mike lynch family.
Despite this dilemma, HP has now firmly stated its intention to proceed with the final stages of the trial, directly involving the mike lynch family. An HP spokesperson told Fortune, “In 2022, an English High Court judge ruled that HPE had substantially succeeded in its civil fraud claims against Dr. Lynch and Mr. Hussain. A damages hearing was held in February 2024 and the judge’s decision regarding damages due to HPE will arrive in due course. It is HPE’s intention to follow the proceedings through to their conclusion.” This statement clarifies HP’s unwavering commitment to see the legal process through, even with Mike Lynch no longer alive and the burden falling upon the mike lynch family.
Although the judge in the UK civil trial ruled in HP’s favor, it was indicated that the damages awarded would likely be less than the $4 billion initially sought by HP. The exact value of Mike Lynch’s estate remains undisclosed, but it is generally believed to be significantly less than $4 billion. It is reported that Lynch earned £500 million (approximately $800 million at the time) from the Autonomy deal. He also founded the venture capital fund Invoke Capital in 2012 and held a 3% stake in the cybersecurity firm Darktrace at the time of his death. These assets will now be considered part of his estate, which the mike lynch family will need to navigate in the context of the ongoing lawsuit.
HP, as a U.S.-listed company, has a fiduciary responsibility to act in the best interests of its shareholders. This obligation is particularly salient given that HP faced shareholder lawsuits following the Autonomy acquisition. Continuing the pursuit against the mike lynch family can be seen as HP fulfilling this duty, attempting to recoup losses from the disastrous Autonomy deal and demonstrate accountability to its investors.
The legal process of pursuing a deceased defendant’s family is legally straightforward. Oliver Embley, a partner at Wedlake Bell, explained to Fortune that upon Mike Lynch’s death, his executors, likely including Angela Bacares as part of the mike lynch family, “step into his shoes.” Under UK law, legal actions against an individual survive their death and become claims against their estate. The existing judgment against Mike Lynch from the UK High Court is binding on his estate, meaning the mike lynch family will have to address this legal and financial challenge.
Angela Bacares, already grieving the loss of both Mike Lynch and their daughter, Hannah, is now expected to take on the responsibility of managing her late husband’s estate and the ongoing legal battle with HP. The final determination of damages, expected later this year, will significantly impact the mike lynch family and the future of Lynch’s estate.
