• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Leadershipfraud

Software founder began lying to HP execs at the very first meeting—’The scene of an $11 billion fraud,’ prosecutors said

By
Michael Liedtke
Michael Liedtke
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Michael Liedtke
Michael Liedtke
and
The Associated Press
The Associated Press
Down Arrow Button Icon
March 18, 2024, 7:55 PM ET
Autonomy founder Mike Lynch
Autonomy founder Mike Lynch appeared in court today. Getty

Federal prosecutors on Monday painted one-time British tech star Mike Lynch as the ruthless mastermind of an $11 billion deal that defrauded Silicon Valley pioneer Hewlett Packard.

Recommended Video

But his lawyer depicted him as a visionary who was made a scapegoat for a desperate buyer’s bad decision.

The contrasting portraits of Lynch, 58, emerged at the start of a criminal trial revolving around HP’s 2011 acquisition of British software maker Autonomy — a deal that was initially celebrated as a coup, but instead unraveled into a costly debacle.

Lynch, once hailed as an example of British ingenuity, is facing 16 felony counts of fraud and conspiracy that could send him to prison for more than 20 years if a jury convicts him of all charges. The trial in San Francisco federal court is scheduled to last two to three months.

Although the trial is mostly about Lynch’s 16-year reign that culminated in his 2012 firing by then-HP CEO Meg Whitman just nine months after the takeover, the proceedings will also cast a spotlight on the decay and chaos at a storied Silicon Valley company.

Whitman’s predecessor, Leo Apotheker, snapped up Autonomy as part of a plan to lessen HP’s dependence on selling personal computers and printers amid the upheaval unleashed by the rise of the smartphone. But after the deal devolved into a financial scandal, Whitman wound up laying off thousands of workers as HP’s fortunes sagged, leading eventually to the company being split in two in 2015.

Lynch’s lawyer, Reid Weingarten, hammered on HP’s deteriorating condition in 2011 as the primary reason the company sought to complete the Autonomy acquisition without even conducting a thorough review of the business. Things were so bad, Weingarten told the the jury, that Apotheker had likened HP to a “burning platform” in the ocean. Meanwhile, Whitman, he said, had praised Autonomy’s products as “magical software.”

“HP was in desperate shape, so they needed to do something,” Weingarten told the jury during his hourlong opening statement.

In his 80-minute opening statement, federal prosecutor Adam Reeves asserted Lynch started lying to HP executives as soon as deal discussions began with an early 2011 meeting held at HP’s headquarters in Palo Alto, California — the same city where Bill Hewlett and Dave Packard started the company in 1939.

“It was the scene of an $11 billion fraud,” Reeves said of that initial meeting between Lynch and HP executives. Although Lynch made it seem like he was running a “money-making machine,” Reeves said, “Autonomy’s success was in fact an elaborate multilayered, multiyear fraud.”

Reeves said the prosecution will present witnesses who will explain how Autonomy cooked its books and engineered a variety of deals to inflate its revenue in illegal ways during a 2 1/2-year period that duped HP into paying for an acquisition it would come to rue. And Lynch orchestrated the skullduggery, according to Reeves.

“He was a dominating, controlling boss,” Reeves told the jury. “For many years, he ran Autonomy with an iron fist.”

Although he acknowledged Lynch is a “hard charger” who demanded the best from his employees, Weingarten said Lynch delegated most accounting and marketing issues while he focused primarily on innovation.

“Mike was ahead of everybody for a long time,” Weingarten said. “He is a startup guy who liked to be eating cold pizza at 2 in the morning while inventing something.”

Weingarten also showed the jury an internal HP document drawn up in July 2011 — a month before the acquisition was announced — valuing Autonomy at $46 billion, suggesting the assessment showed HP thought it was getting a bargain to acquire the rights to software that helped businesses find information buried in emails and Word documents.

Autonomy’s “software was so powerful that no competitor was near them and it sold like hotcakes,” Weingarten said.

Lynch, who has been free on $100 million bail since being extradited to the U.S. last May, sat stoically through most of the opening statements while looking at presentations appearing on a display and occasionally peering at the lawyers and jury.

The jury eventually will get to hear from Lynch, who Weingarten promised will testify to tell his side of the story.

“We want you to know him, we think that helps us,” Weingarten said.

The testimony will likely open the door for prosecutors to drill down into Lynch’s motives for making a deal from which he pocketed more than $800 million, according to court documents.

Apotheker, who was replaced Whitman a few weeks after the Autonomy deal was announced, also is expected to testify. Whitman, currently the U.S. ambassador to Kenya, isn’t expected to come to court during the trial, although her management of HP and the Autonomy takeover is expected to be placed under a microscope.

Lynch’s trial will simultaneously cover fraud allegations made against Stephen Chamberlain, Autonomy’s former vice president of finance.

Sushovan Hussain, Autonomy’s former chief financial officer and Lynch’s former office mate, was sentenced to five years in prison in 2019 after being convicted on 16 criminal counts of fraud and conspiracy. Although Hussain’s name was mentioned during Monday’s opening statements, his conviction wasn’t.

About the Authors
By Michael Liedtke
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Man in a white shirt and jacket.
InnovationBrainstorm Tech
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
4 hours ago
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
AIBrainstorm Tech
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
By Sharon GoldmanJune 9, 2026
7 hours ago
The AI industry spent years chasing bigger models. Now it’s chasing efficiency
AIBrainstorm Tech
The AI industry spent years chasing bigger models. Now it’s chasing efficiency
By Sharon GoldmanJune 9, 2026
9 hours ago
Xbox CEO Asha Sharma speaks on stage at Fortune Brainstorm Tech 2026.
Big TechMicrosoft
‘Not an Allbirds Moment’: Xbox’s new CEO says she is grounding the console in gaming roots, not AI
By Sebastian HerreraJune 9, 2026
9 hours ago
BP’s new CEO Meg O’Neill rips up the energy giant’s playbook—and the ‘green’ era with it
EnergyBP
BP’s new CEO Meg O’Neill rips up the energy giant’s playbook—and the ‘green’ era with it
By Jordan BlumJune 9, 2026
9 hours ago
Three people having a seated discussion
AIBrainstorm Tech
‘Getting control where we can’: Europe wants sovereign AI, but most of the chips are from the U.S.
By Amanda GerutJune 9, 2026
10 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
11 hours ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.