After years of wrangling, HP has gained its civil fraud case towards Autonomy founder and chief government Mike Lynch. The ruling, the most important civil fraud trial in UK historical past, got here simply hours earlier than UK residence secretary authorized Lynch’s extradition to the US, the place he faces additional fraud costs.
The UK’s Excessive Court docket discovered that HP had “considerably succeeded” in proving that Autonomy executives had fraudulently boosted the agency’s reported income, earnings, and worth. HP paid $11 billion for the agency again in 2011 and later introduced a $8.Eight billion write-down of its worth. In courtroom, HP claimed damages of $5 billion, however the choose stated the overall quantity due can be “significantly much less” and introduced at a later date. Kelwin Nicholls, Lynch’s lawyer and a accomplice at legislation agency Clifford Likelihood, stated his consumer intends to attraction the Excessive Court docket ruling. In a later assertion, Nicholls stated his consumer would additionally attraction the extradition order within the UK’s Excessive Court docket.
This week’s occasions are the newest twist in an extradition course of that started in November 2019, when the US Embassy in London submitted a request for Lynch to face trial in the US on 17 counts, together with wire fraud, conspiracy, and securities fraud. Lynch denies all costs towards him. Nicholas Ryder, professor in monetary crime on the College of the West of England describes it because the “Colt-45 for the US Division of Justice”—an all-pervasive and highly effective transfer. “That’s their go-to cost. The ramifications for Mr. Lynch are vital.”
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