View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Leadership
  2. Digital Transformation
February 5, 2020updated 07 Feb 2020 9:11am

Mike Lynch Submits Himself for Arrest

"This case has wider implications for British business"

By CBR Staff Writer

Former Autonomy CEO Dr Mike Lynch has submitted himself for arrest this morning, in what his legal team described as a formality required as part of an extradition process initiated by the US Department of Justice.  Lynch is still contesting extradition.

US federal prosecutors filed criminal charges against the UK tech executive and investor in November 2018, over the $11 billion sale of his software company Autonomy to HP in 2011. The charges include 14 counts of conspiracy and fraud.

They are seeking to confiscate $815 million.

The acquisition was disastrous for HP, costing then-CEO Léo Apotheke his job and spawning multiple lawsuits. After writing off three quarters of Autonomy’s value, it sold the what was left of the company to Micro Focus in 2016.

(Micro Focus, in turn, is still grappling with the integration of those assets, this week admitting that it “significantly underestimated the challenges that emerged in the integration of the HPE Software business”: these are set to cost it $960 million).

Dr Lynch is also embroiled in a multi-billion civil lawsuit with HPE.

See also: Wronged, or Rogue? Mike Lynch Case Begins

His lawyers Chris Morvillo and Reid Weingarten said: “Since HP first raised [their] allegations more than seven years ago, Dr Lynch has steadfastly denied them and has worked hard to properly respond and set the record straight.

Content from our partners
Why food manufacturers must pursue greater visibility and agility
How to define an empowered chief data officer
Financial management can be onerous for CFOs, but new tech is helping lighten the load

“The UK SFO previously investigated and did not pursue the allegations. Dr Lynch has now answered HP’s claims in the appropriate forum, the High Court in London, where he attended court every day of the 10-month trial.

“During that trial, Dr Lynch testified about all of these allegations for more than 20 days. He has not hidden, nor has he shied away from defending his conduct. Having patiently and diligently defended the case in England for several years, he awaits the civil trial judgment. The US DOJ should not have commenced extradition proceedings prior to the judgment of the English High Court.

They added: “This case has wider implications for British business. The US claims concern alleged conduct in the UK.  Dr Lynch is a British citizen who ran a British company listed on the London Stock Exchange, governed by English law and UK accounting standards. This extradition request reflects yet another example of the DOJ’s attempts to exert extraterritorial jurisdiction over non-US conduct.

“The forum bar in the UK Extradition Act was enacted by the UK Parliament to protect British citizens from such a scenario.

“Dr Lynch vigorously rejects all the allegations against him and is determined to continue to fight these charges.”

More to follow. 

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU