British tech giant founder Mike Lynch could be handed over to the United States


Mike Lynch leaves London High Court on March 25, 2019

Mike Lynch leaves London High Court on March 25, 2019

According to a London court, the founder of British software company Autonomy could be handed over to the United States on charges of conspiracy and fraud.

Mike Lynch sold Autonomy to US computer giant Hulett Packard (HP) for $ 8.4 billion in 2011.

He denies allegations that he fraudulently inflated the value of autonomy before the sale.

His lawyer, Clifford Chance’s Chris Morbiro, said Dr. Lynch was disappointed with the decision and would appeal.

Dr. Lynch is facing a civil suit in the London High Court, and HP is suing him for damages related to the transaction. But apart from that, the US Department of Justice (DoJ) has filed criminal charges against him.

Judge Michael Snow said he would decide in the proceedings without waiting for a civil verdict, saying “the importance of this case is limited.” Dr. Lynch was released on bail by a judge in London.

“Dr. Lynch is disappointed that the court ruled against him without waiting for the High Court’s decision in a civil suit that considered all of these issues,” Morbiro said.

“At the request of the U.S. Department of Justice, the court should ban a British citizen who ran a British company listed on the London Stock Exchange to the United States on the grounds of allegations of his conduct in the United Kingdom. I decided that.

“We say the case belongs to the United Kingdom, but if the Minister of Interior decides to order the surrender, Dr. Lynch will appeal.”

“Artificially inflated”

The Serious Fraud Office in the United Kingdom investigated the transaction in 2013, but withdrew the proceeding two years later due to “insufficient evidence.”

Autonomy was founded in 1996 by Dr. Lynch. We have developed software that can extract useful information from “unstructured” data sources such as telephones, emails, and videos, and perform actions such as suggesting answers to call center operators and monitors. A television channel for words and subjects.

Prior to its acquisition by HP, it was headquartered in San Francisco and Cambridge, England.

In 2010, approximately 68% of Autonomy’s reported revenue came from the United States and elsewhere in the Americas.

HP and U.S. prosecutors allege that Dr. Lynch and other former Autonomy executives artificially inflated software company revenues and revenues between 2009 and 2011, and HP overpaid the company. There is.

However, Dr. Lynch claimed that HP used the claim to conceal its mismanagement of post-transaction autonomy in 2011.