Hewlett Packard Enterprise (HPE) confirmed it would pursue its U.K. claim for up to $4 billion in damages against the family of British tech mogul Mike Lynch, who was killed when his superyacht sank off Sicily coast in August.
In 2011, HPE acquired Lynch's software company Autonomy for $11 billion. But, soon after the deal, the company sued Lynch and his former finance director, Sushovan Hussain, claiming they inflated the value of the company, AP reported.
In 2022, Britain's High Court ruled in favor of HPE, however, earlier this year, a U.S. trial court acquitted Lynch of fraud and conspiracy charges in the deal.
HPE has now stated it will pursue his family estate for $4 billion damages. Lynch's widow, Angela Bacares, could be liable to pay the damages. However, the judge in the U.K. civil case has already ruled that the amount payable in damages would be "substantially less" than the company is seeking.
Citing "accounting irregularities, HPE wrote down the deal's value by $8.8 billion. In its ruling, the Britain's High Court had stated that Lynch could have known about the accounting fraud.
As per Fortune report, Lynch was planning to use the U.S. trial court ruling to appeal against the civil court ruling in Britain.
Lynch was celebrating his acquittal on fraud charges when his yacht ran into a storm killing six persons including his 18-year-old daughter. Italy is investigating the case.
HPE was earlier hesitant to continue with the case considering the negative publicity it would have to counter. But, the company has announced its decision to continue with the final stages of the 13-year-old legal battle.
"In 2022, an English High Court judge ruled that HPE had substantially succeeded in its civil fraud claims against Dr Lynch and Mr Hussain," an HPE spokesperson said.
"A damages hearing was held in February 2024 and the judge's decision regarding damages due to HPE will arrive in due course. It is HPE's intention to follow the proceedings through to their conclusion."
Lynch earned £500 million (then around $800 million) from the Autonomy deal. In 2012, he set up a venture capital and held a 3% stake in the British cybersecurity company Darktrace at the time of his death.
"In the UK, all legal actions against a person survive against their estate following their death. Any judgment already made, as in the case of HPE's High Court claim against Mr Lynch, is binding on his estate," Oliver Embley, a partner at Wedlake Bell, told Fortune.
