The UK’s Serious Fraud Office may have dropped its investigation of software firm Autonomy earlier this year, but that doesn’t appear to have done much to allay HP’s ire. HP – which acquired Autonomy in 2011 – has confirmed that it plans to sue Mike Lynch and Sushovan Hussain, Autonomy’s former CEO and CFO, for $5.1 billion.
HP filed a Claim Form against Lynch and Hussain on Monday alleging they engaged in fraudulent activities while executives at Autonomy, an HP spokeswoman said via e-mail. “The lawsuit seeks damages from them of approximately $5.1 billion.”
HP will not comment further on the case until the proceedings have been served on the defendants, she said.
HP’s filing was made in London’s Chancery Division High Court. In response, Lynch, via his website AutonomyAccounts.org, said that Autonomy’s former management team plans to strike back with a counterlawsuit, citing “loss and damage caused by false and negligent statements made against them by HP”. The counterlawsuit will be filed in the UK and will likely seek more than £100 million in damages.
On 20 November 2012, HP announced an impairment charge of $8.8 billion as a result of what it called “accounting improprieties, misrepresentations and disclosure failures in Autonomy financial statements prior to 2011 acquisition by HP”. Lynch takes issue with that move, and says it marked the beginning of a “smear campaign” against him and other Autonomy executives.
It’s not clear from Lynch’s website which other former Autonomy executives are represented by his group.
HP acquired Autonomy for $11.7 billion. HP shareholders filed suit in 2012, and UK regulators launched their investigation into the deal the following year. An investigation by the US Department of Justice is ongoing.
IDG News Service
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