The British technology billionaire Mike Lynch has lost a $5bn fraud claim against him over the 2011 sale of his software company Autonomy to Hewlett Packard.
Friday’s verdict from Mr Justice Hildyard, which follows the UK’s biggest ever civil fraud case, is a blow to Mr Lynch’s hopes of fighting extradition to the US, where he faces criminal charges that could lead to decades in prison if he is found guilty.
HP had sued Mr Lynch, accusing him of fraudulently inflating the value of Autonomy before its sale to Hewlett Packard and seeking $5bn (£3.7bn).
Mr Justice Hildyard said the claimants had “substantially succeeded” but that the “quantum will be determined in a later judgment”. He said the costs would be “substantial but considerably less than claimed”.
The ruling is a pivotal moment in the decade-long battle between Mr Lynch and HP, the Silicon Valley IT giant.
Mr Justice Hildyard delivered his verdict two years after the end of a nine-month trial wrapped up.
The lengthy reserved judgment has complicated Mr Lynch’s attempt to avoid extradition to the US, where he faces criminal charges over Autonomy’s sale.
Priti Patel, the Home Secretary, must decide today whether to approve an order that Mr Lynch should be extradited.
The result of the civil judgment is expected to be a key factor in any extradition appeal lodged by Mr Lynch.
HP bought Autonomy for $11bn in 2011 but later wrote down almost all the value of the company. In 2015 it alleged fraud against Mr Lynch and Autonomy’s chief financial officer Sushovan Hussain.
The judge found against both men, who had denied the claims. Mr Lynch countersued claiming reputational damage.
An appeal was seen as likely regardless of the result.
