Jodi Godoy
(Reuters) – Jurors in the trial of British technology pioneer Mike Lynch are expected to hear closing arguments on Monday in San Francisco in a fraud case related to Hewlett-Packard’s $11 billion acquisition of his software company Autonomy in 2011 year.
The Cambridge University-educated entrepreneur took the stand in his own defense at trial, denying wrongdoing and telling jurors that HP (NYSE:) botched the integration of the two companies.
HP reduced the value of Autonomy by $8.8 billion within a year of the acquisition.
Lynch and former Autonomy CFO Stephen Chamberlain face fraud and conspiracy charges for allegedly plotting to boost the company’s earnings starting in 2009, in part to lure away a buyer.
Prosecutors say the pair padded Autonomy’s finances in several ways, including backdated agreements and back-and-forth deals in which funds were transferred to customers through forged contracts.
At the trial, which began in mid-March, jurors heard from more than 30 government witnesses, including Leo Apotheker, the former HP CEO who was fired weeks after the Autonomy deal was announced.
Lynch’s lawyers argued that HP was so eager to acquire Autonomy ahead of potential competitors that it rushed to conduct due diligence before the sale.
On the stand, Lynch said he was focused on technical issues and delegated financial matters and accounting decisions to Sushovan Hussain, then Autonomy’s chief financial officer.
Hussein was separately convicted in 2018 at a trial in the same court. He was released from US prison in January after serving a five-year sentence.
Lynch was one of the UK’s leading technology entrepreneurs, having been compared to Apple (NASDAQ:) co-founder Steve Jobs and Microsoft (NASDAQ:) co-founder Bill Gates.
In one of the largest British technology deals at the time, the acquisition of Autonomy was intended to boost HP’s software development. Instead, it spawned a series of bitter and costly legal battles.
HP largely won a civil case against Lynch and Hussain in London in 2022, although a decision on damages has yet to be made. The company wants to raise $4 billion.