Hewlett Packard (HP) is seeking $1.7 billion (£1.3 billion) from the estate of Mike Lynch, who died last year when his yacht sank, over HP's acquisition of his firm Autonomy, the tech giant's lawyers have told the High Court.
HP, now known as Hewlett-Packard Enterprise (HPE), bought Lynch's technology firm Autonomy in 2011, but it is alleged that Mr Lynch and former Autonomy chief financial officer Sushovan Hussain misrepresented the company's finances.
In a 2019 trial, HPE accused Lynch of overstating Autonomy's revenue, which it said forced it to announce an $8.8 billion writedown on the company's value.
In 2022, Judge Hildyard ruled that HPE was “substantially successful” in its claim but would likely receive “substantially less” than the $5 billion it sought in damages.
Earlier this year, he ruled that HPE suffered losses of around £700 million due to its purchase of Autonomy.
Mr Lynch and his teenage daughter Hannah were among the seven passengers and crew killed when the Bayesian sank off the coast of Sicily last August during a storm that caused the ship to capsize and sink.
The hearing in London, which began on Tuesday, will now decide whether Mr Lynch's estate can appeal the 2022 and 2025 decisions.
In written submissions, Patrick Goodall, a lawyer representing HPE, argued that Mr. Lynch's estate was owed $1.7 billion, including about $761 million in interest.
He said Lynch “not only committed a massive fraud, but lied about it at every stage.”
He said the plaintiffs had spent almost £150 million on the legal battle and were claiming almost £113 million from Mr Lynch's estate.
Mr Goodall also said Mr Lynch's estate should not be allowed to appeal either the 2022 or 2025 decisions.
In written submissions, Richard Hill, a lawyer representing Mr. Lynch's estate, said the $761 million in interest sought by the plaintiffs was “an excessive amount… based on flawed analysis” and that “a legally and economically rational approach would provide a substantially lower amount.”
The plaintiffs' position that “they were the winners in this lawsuit” was “too simplistic,” he added.
Mr Hill also argued that Mr Lynch's estate should be allowed to appeal the two previous decisions, arguing that the judge “erred in law” and that there was a “compelling case for the appeal to proceed”.
A spokesman for the Lynch family said: “Today's hearing concerns technical issues that do not change anything on the merits of the case.
“The basic facts remain the same: HP's assertion was fundamentally flawed and a wild exaggeration.”
In another case, Lynch was extradited to the US in 2023 to face criminal charges and was cleared of fraud charges in 2024.
He was celebrating his acquittal on his yacht when it sank.
