Despite the tragic death of billionaire Mike Lynch in August when his yacht sank in Sicily, HP is continuing its claims against his heirs, particularly his widow, Angela Bacares.
Does the death of the main protagonist put an end to a legal standoff that has lasted more than ten years? Not necessarily. Mike Lynch, who died on August 19 when his yacht sank off the coast of Sicily with his 18-year-old daughter and five other people, remains at the heart of legal wrangles. On September 2, Hewlett-Packard (HP), which has been engaged in litigation with the British businessman for more than 13 years, announced its intention to continue the procedure against Mike Lynch’s heirs.
The American company relies on a peculiarity of the British legal system that allows a civil case to be transferred to the defendant’s estate in the event of his death. At the forefront of this trial, called by some the “trial of the century”, is his widow, a survivor of the tragedy, but overwhelmed by the loss of her husband and daughter.
A legal saga that is more than ten years old
Let’s go back to the legal history. In 2011, Mike Lynch sold Autonomy, a software company he founded 15 years earlier, to Hewlett-Packard for $13 billion. However, the buyer quickly accused Lynch and his CFO of artificially inflating the company’s revenue, growth, and margins, causing HP to suffer significant financial losses.
Both the American and British courts, seized by HP, ruled differently in the Autonomy case. Last June, after a decade of proceedings, the San Francisco court acquitted the British billionaire. On the other hand, the British courts found him guilty in 2022 of fraudulently increasing the software publisher’s accounts. Since then, HP has been demanding $4 billion from Mike Lynch, an amount on which the British judge in charge of the case has yet to rule.
Shipwreck in Sicily: How did a waterspout sink a yacht?
Ironically, on the day of the tragedy on his luxury sailboat, Mike Lynch was celebrating his acquittal in the United States with a few friends, including a senior executive at Morgan Stanley. This judicial decision had spared him potential years in prison.
A significant reputational risk for HP
Asked by the Daily Mail about the ongoing lawsuits, an HP spokesperson said: “We do not believe it is appropriate to comment on legal matters in these tragic circumstances.” The British newspaper also quoted a source close to the case as saying: “It is now in the hands of the judge. We await his decision.”
While friends of the late billionaire deplore the situation, the lawsuit by Mike Lynch’s widow could also tarnish HP’s image. A final twist in a long and costly legal saga, which Angela Bacares, Mike Lynch’s wife, will now have to face alone.
