Mike Lynch’s estate faces being wiped out after $1.24bn ruling

The estate of the late tech tycoon Mike Lynch is likely to be wiped out after being ordered to pay £920 million ($1.24billion) in damages to Hewlett-Packard (HP).

The ruling comes two years after Mr Lynch died in the Bayesian superyacht disaster off Sicily alongside his teenage daughter, Hannah.

London’s High Court said the estate must pay compensation, costs and interest to HP, following a 2022 judgment that Mr Lynch misled the company into overpaying £8.2 billion when it bought his software firm, Autonomy.

Mr Lynch’s estate was estimated to be worth around £500million, so the damages could leave it bankrupt.

The tech entrepreneur and six others — including his 18-year-old daughter Hannah — died in August 2024 during a trip with friends and family to celebrate his acquittal on US fraud charges linked to HP’s $11bn takeover of Autonomy in 2011.

HP previously accused Mr Lynch and ‌Autonomy's ⁠former chief financial officer, Sushovan Hussain, of inflating the firm's value before the takeover.

HP wrote down Autonomy's ​worth by $8.8 ​billion ⁠within a year of the purchase.

The US tech company has sought damages in UK civil proceedings of up to $4.55bn from the estate of the late tycoon.

In 2022, the High Court ​found Mr Lynch and Hussain liable ​to ⁠HP over the deal.

Lawyers for Mr Lynch's estate sought permission to appeal, ⁠which ​was refused, though they ​ can apply directly to the Court of Appea l.

The massive award exceeds the known assets of the estate, leading experts to conclude it will be "wiped out".

While Lynch’s widow, Angela Bacares-Lynch, reportedly holds substantial personal assets, it remains unclear if HP will attempt to pursue her for any shortfall not covered by the estate.

HP welcomed Tuesday’s decision, which it said in a statement “brings us another step closer to resolution of the dispute”.

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A spokesperson for the Lynch family said: “We are disappointed by the court’s refusal and believe an application to the court of appeal should follow in the interests of justice.

HP’s $5bn damages claim has already been shown to be vastly exaggerated.

“Dr Lynch’s acquittal in the US, where witnesses were properly cross-examined, exposed the truth.

The damage to Autonomy was the result of HP’s own actions and failures, not wrongdoing at Autonomy.”