British businessman Mike Lynch, who was acquitted in June of a multi-billion pound fraud case in the US, has stated that his substantial wealth was crucial in clearing his name.
At 59, Lynch faced up to 20 years in prison if convicted on 17 charges related to the sale of his tech company, Autonomy, to Hewlett-Packard. He told BBC Radio 4’s PM programme that while he was confident of his innocence, it was his financial resources that allowed him to afford the exorbitant legal fees necessary for his defense.
"You shouldn’t need financial resources to defend yourself as a British citizen," Lynch remarked. "Let’s be honest, the reason I am here today is not just because I was innocent but because I had the means to withstand a legal process that often overwhelms those without substantial funds."
He highlighted that most people, even if they liquidated all their assets, would quickly deplete their resources, a situation he believes needs to change.
### HP & Autonomy
Lynch co-founded Autonomy in Cambridge in 1996. The company grew rapidly, becoming one of the UK’s top tech firms, earning Lynch the nickname "Britain’s Bill Gates." Hewlett-Packard acquired Autonomy for $11 billion in 2011, a deal from which Lynch personally earned £500 million. However, the acquisition soon faced scrutiny over its high price, leading HP to write down Autonomy’s value by $8.8 billion a year later, alleging that Lynch had inflated the company’s worth.
In 2018, US prosecutors charged Lynch with inflating Autonomy’s value through backdated agreements, concealing its loss-making hardware business, and attempting to intimidate or bribe whistleblowers. Despite his resistance, Lynch was extradited to the US in 2022, where he was ultimately acquitted in June. Lynch testified he was not involved in the disputed transactions and his defense team argued that HP had failed to adequately vet the deal. Another former Autonomy finance executive, Stephen Chamberlain, was also found not guilty.
Describing the moment he awaited his verdict as "indescribable" and like being "between two universes," Lynch expressed relief upon his acquittal. However, he has criticized the British government for allowing his extradition under a treaty he argues is too permissive, questioning whether it is right to send British citizens to a justice system as flawed as that of the US.
"The British government needs to defend its citizens," Lynch said. "A US prosecutor wields far more control over you than a local police officer in the UK."
### Moving Forward
Beyond the criminal case, Lynch faces additional legal battles. In 2019, Autonomy’s former CFO Sushovan Hussain was sentenced to five years in prison and fined millions of dollars on fraud and securities charges. In 2022, HP won a civil fraud case against Lynch and Hussain in London’s High Court, and is seeking around $4 billion.
Lynch attributes some of the ongoing legal issues to the presentation of untested evidence from the US. Looking ahead, he plans to return to his passion for technology and innovation, expressing interest in how AI can be applied to legal challenges and hearing loss.
"I want to get back to what I love doing, which is innovating," Lynch said.
