On Friday, the 22nd of March 2019, US prosecutors had added three fresh criminal charges against British entrepreneur Mike Lynch, related to an $11.1 billion sale of his software company Autonomy to HP in 2011. These three new charges had been a latest development of recent leg of legal battle between Lynch and Hewlett Packard, as these two had been engaged in a legal battel for more than six years over an Autonomy sale deal.
Hewlett Packard had been seeking a $5 billion in fine, accusing Autonomy of inflating their share prices before getting sold off by 2011 for $11.1 billion. Meanwhile, Lynch had been looking for around $1 billion in liabilities over HP prompted hassles linked to the sales of Autonomy.
Never the less, the US prosecutors have now sued Lynch for new charges of securities fraud, which carries a sentence of as many as 25 years in prison. Besides, additional charges of conspiracy to inflate share price and wire fraud had been filed in a federal court in San Francisco.
This fresh set of charges was revealed ahead of Monday’s (March 25th) scheduled start of a $5 billion civil fraud charge in a London High Court filed by the Autonomy buyer Hewlett Packard. So far, Lynch had denied any kind of wrongdoing and blamed the failure of takeover deal on HP management.