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HP’s 2015 lawsuit against former executives of software company Autonomy will begin in London’s Supreme Court on Monday. The computer giant is claiming $5.1 billion in damages.

In 2011, HP was 11 billion dollars for Autonomy, but then wrote off 8.8 billion dollars in value. The company accuses former CEO Mike Lynch and former CFO Sushovan Hussain of fraud and exaggerating the value of Autonomy.

Lynch and Hussain deny the allegations, with Lynch also claiming a counterclaim of 150 million dollars from HP for reputational damage. Business Insider does not rule out the possibility that the lawsuit will take nine months. In the near future, a forensic investigation into Autonomy will be started and important players will be heard.

The takeover took place in 2011 under the leadership of former CEO Leo Apotheker and was the focal point of his strategy to turn HP into a software company. Unfortunately for Apothecary that turned out differently. Although the acquisition of Autonomy was completed, Pharmacist had to make way for Meg Whitman as new CEO.

Tampering

According to the computer giant, Lynch and Hussain have cheated on the accounts, as a result of which HP claims to have paid more than 5 billion dollars too much for the software company. HP claims that the two former executives were engaged in fraudulent activities and are responsible for serious accounting inaccuracies, disclosure defects and blatant misrepresentations.

Both gentlemen firmly deny the accusations. They claim that the fall in value was purely due to HP’s own poor management of Autonomy, after it was acquired.

Mike Lynch is pleased to finally have the opportunity to respond to HP’s accusations in court. There was no fraud at Autonomy. It is more a dispute about differences between British and American accounting systems. The case will focus on the proper exercise of business judgment in a particular context and time period. This with the full knowledge and approval of numerous financial and technical experts and advisors. The real story is that HP, after a history of failed acquisitions, has ruined the purchase of Autonomy and destroyed the company. They blame others for this. Mike will not be a scapegoat for their failures, according to a spokesman for Lynch.

Previously convicted

However, Lynch was also charged with fraud by the US Department of Justice last November. On Friday, new indictments were added to the charge, representing a maximum term of imprisonment of 25 years. Lynch wouldn’t have travelled to the United States yet, but might be waiting for an extradition.

Hussain has also been found guilty of fraud in the US before. He’s been convicted on sixteen counts of bank and securities fraud. Hussain’s sentence has been postponed and his bail prevents him from leaving the US. Although it is a separate criminal trial, according to Business Insider the conviction could strengthen HP’s case. Hussain is said to have indicated that he would like to be present at the London trial. It is not clear whether he can participate via a video link. HP has argued that Hussain should testify earlier than planned, in case his punishment results in imprisonment.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.