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US criminal trial of British tech founder Mike Lynch to wrap up
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US criminal trial of British tech founder Mike Lynch to wrap up
Jun 2, 2024 11:30 PM

June 3 (Reuters) - Jurors at the trial of British tech

pioneer Mike Lynch are expected to hear closing arguments in San

Francisco on Monday in the fraud case related to

Hewlett-Packard's ( HPE ) $11 billion acquisition of his

software company Autonomy in 2011.

The Cambridge University-educated entrepreneur took the

stand in his own defense at the trial, denying wrongdoing and

telling jurors that HP botched the two companies' integration.

HP wrote down Autonomy's value by $8.8 billion within a year

of the acquisition.

Lynch and former Autonomy finance executive Stephen

Chamberlain face charges of fraud and conspiracy for allegedly

scheming to inflate the company's revenue starting in 2009,

partly to entice a buyer.

Prosecutors say the pair padded Autonomy's finances in

several ways, including back-dated agreements and "round-trip"

deals that fronted cash to customers through fake contracts.

At the trial that began in mid-March, jurors have heard from

more than 30 government witnesses including Leo Apotheker, the

former HP CEO who was fired weeks after the Autonomy deal was

announced.

Lynch's legal team has argued that HP was so eager to

acquire Autonomy ahead of potential competitors that it rushed

through due diligence before the sale.

On the stand, Lynch said he had been focused on tech issues,

and entrusted money matters and the accounting decisions at

issue to Sushovan Hussain, Autonomy's then-chief financial

officer.

Hussain was separately convicted in 2018 at a trial in the

same court. He was released from U.S. prison in January after

serving a five-year sentence.

Lynch was one of the UK's leading tech entrepreneurs,

drawing comparisons to Apple ( AAPL ) cofounder Steve Jobs and

Microsoft ( MSFT ) cofounder, Bill Gates.

In one of the biggest British tech deals at the time, the

Autonomy acquisition was meant to fuel HP's software business.

Instead, it spawned a series of bitter and expensive legal

battles.

HP largely won a civil lawsuit against Lynch and Hussain in

London in 2022, though damages have not yet been decided. The

company is seeking $4 billion.

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