HP accuses Autonomy chief executive Michael Lynch of fraud

Autonomy executives face more legal trouble

Hewlett Packard is to sue the ex-CEO and ex-CFO of Autonomy for fraud, following its ill-recieved purchase of the firm.

HP is not commenting on the legal moves, but it did share the PDF of the filed court papers with V3. Those papers reveal that HP feels that the Autonomy executives should still be ‘held accountable’ for fraud.

HP has already tackled complaints about the purchase that were aimed at it by its shareholders. When it revealed the end of the suit, in June, it said that its shareholders claims had been dismissed, and added that its investors would join it in a suit against Autonomy.

That new suit was filed on Monday and confirms that HP will, as it said, be accusing the CEO, and CFO – Sushovan Hussain – of fraud.

“Sushovan Hussain, Autonomy’s CFO from 2001 to May 2012, was one of the chief architects of the massive fraud on HP that precipitated this litigation,” HP said in the filing.

“The shareholder plaintiffs who originally sued HP’s directors and officers now agree that  Hussain, along with Autonomy’s founder and CEO, Michael Lynch, should be held accountable for this fraud. The settlement, therefore, provides for the shareholder plaintiffs to drop their claims against the victims of Lynch and Hussain’s fraud, and for their counsel to assist HP in pursuing the perpetrators of the fraud, who inflicted billions of dollars of harm on the company.”

HP does not mince its words and called Hussain a ‘fraudster’ who knows that he is under investigation and knowingly ‘damaged’ HP and its shareholders.

“Hussain is no champion of HP’s interests. The only interests he is trying to protect are his own,” he added. “And because his interests are diametrically opposed to HP’s interests, he does not have standing to challenge the substance of the settlement.”

Autonomy CEO Mike Lynch vehemently denies the allegations. V3 contacted the former Autonomy management for comment on the latest legal developments but had received no reply at the time of publication.

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5 August 2014 | 7:59 am – Source: v3.co.uk

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