UK Court Awards $946 Million to HP in Mike Lynch Fraud Case

A UK court has awarded £700 million ($946 million) in compensation to Hewlett Packard Enterprise (HPE) in a fraud case involving late British tech tycoon Mike Lynch. Lynch's company, Autonomy, was sold to HPE in 2011 for $11 billion, but HPE accused Autonomy of artificially inflating its revenues and growth. The court ruled in favor of HPE, with the final amount of damages to be determined at a further hearing in November. Lynch, who was killed in a yacht sinking last year, had faced fraud charges in the US and had prepared a written reaction to the judgment, stating that the ruling "exposes HP's failure" and that any debts would have to be discharged from his estate.

A UK court has awarded Hewlett Packard Enterprise (HPE) £700 million ($946 million) in compensation in a fraud case involving the late British tech tycoon Mike Lynch. The ruling, delivered by Judge Robert Hildyard on July 22, 2025, comes after HPE accused Autonomy, Lynch's software company, of artificially inflating its revenues and growth. The court ruled in favor of HPE, with the final amount of damages to be determined at a further hearing in November [1].

Lynch, who was killed in a yacht sinking off the coast of Sicily in 2024, had faced fraud charges in the US. He had maintained his innocence and blamed HPE for failing to integrate Autonomy into the company. In a written reaction to the judgment, Lynch stated that the ruling "exposes HP's failure" and that any debts would have to be discharged from his estate [1].

HPE had initially sought up to $4 billion in damages, but Judge Hildyard ruled that HP sustained losses of over £646 million ($871.8 million) in relation to the difference between what HP paid for Autonomy and what HP would have paid "had Autonomy's true financial position been correctly presented" [2]. Additionally, HPE was entitled to another £51.7 million in relation to "personal claims for deceit and/or misrepresentation against Dr Lynch and Mr Hussain", plus another $47.5 million in relation to losses suffered by group companies [2].

The decision marks a significant milestone in the legal battle that has been ongoing since HPE acquired Autonomy for $11.1 billion in 2011. HPE wrote down Autonomy's value by $8.8 billion within a year and brought a $5 billion lawsuit against Lynch and Hussain in London, with a judge ruling in HP's favor in 2022 [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-22/hpe-lost-730-million-after-buying-mike-lynch-s-autonomy-judge-says
[2] https://www.reuters.com/sustainability/boards-policy-regulation/hp-owed-over-940-mln-by-mike-lynchs-estate-ex-business-partner-uk-court-rules-2025-07-22/