Autonomy founder Mike Lynch was once acquitted of fraud on Thursday through a jury in San Francisco, a significant win for the entrepreneur who has been dogged through criminal issues for the reason that disastrous sale of his corporate to Hewlett-Packard for $11 billion in 2011.
Representatives for Lynch and U.S. prosecutors mentioned Lynch was once acquitted on all 15 fees — one depend of conspiracy, and 14 counts of cord fraud, every hooked up to express transactions or communications.
Former Autonomy finance government Stephen Chamberlain, who confronted the similar fees at trial along Lynch, was once additionally acquitted on all counts, the Lynch consultant mentioned.
The trial, the place prosecutors mentioned Lynch and Chamberlain schemed to inflate Autonomy’s income, was once the most recent bankruptcy in a criminal saga stemming from the failed deal.
The Autonomy sale was once some of the largest British tech offers at the time however temporarily went bitter, with HP writing down Autonomy’s price through $8.8 billion inside of a yr.
“I am elated with today’s verdict,” Lynch, who was once as soon as when put next with Apple cofounder Steve Jobs and Microsoft cofounder Bill Gates, mentioned in a commentary. “I am looking forward to returning to the U.K. and getting back to what I love most: my family and innovating in my field.”
Abraham Simmons, a spokesperson for the Office of the United States Attorney mentioned: “We acknowledge and respect the verdict.”
At the trial, which lasted 3 months, jurors heard from greater than 30 govt witnesses together with Leo Apotheker, the previous HP CEO who was once fired weeks after the Autonomy deal was once introduced.
Lynch additionally took the stand in his personal protection at the trial, denying wrongdoing and telling jurors that HP botched the 2 firms’ integration. Prosecutors mentioned Lynch and Chamberlain padded Autonomy’s price range in numerous tactics, together with back-dated agreements and “round-trip” offers that fronted money to shoppers via pretend contracts.
Lynch’s criminal group argued at trial that HP was once so keen to procure Autonomy forward of attainable competition that it rushed via due diligence earlier than the sale. On the stand, the Cambridge University-educated entrepreneur mentioned he have been eager about tech problems, and entrusted cash issues and the accounting choices at factor to Sushovan Hussain, Autonomy’s then-chief monetary officer. Hussain was separately convicted in 2018 at a trial in the similar court docket on fees associated with the care for HP. He was once launched from U.S. jail in January after serving a five-year sentence.
Lynch became ground-breaking analysis at Cambridge into the basis of Autonomy, which turned into Britain’s largest instrument corporate and a member of the blue-chip FTSE 100 index.
He was once lauded through teachers and scientists and requested to advise the British govt on generation and innovation. The Autonomy acquisition was once intended to gasoline HP’s instrument industry. Instead, it spawned a chain of sour and dear criminal battles. HP largely won a civil lawsuit towards Lynch and Hussain in London in 2022, despite the fact that damages have now not but been made up our minds. The corporate is looking for $4 billion.
