It may be April Fool’s Day, but I’m sure former Autonomy CEO Mike Lynch and HP execs aren’t laughing about this. As deal gone bad
HP filed suit in London this week against Lynch and former Autonomy CFO Sushovan Hussain over alleged accounting improprieties to the tune of $5.1B. Lynch and company’s response? Counter-sue, as a war that’s been going on for almost four years, continues unabated.
He has kept a blog called AutonomyAccounts.org for a couple of years expressly for the purpose of answering HP’s charges and his latest entry from yesterday indicated former Autonomy execs are counter-suing HP for £100 million.
“HP can confirm that, on March 30, a Claim Form was filed against Michael Lynch and Sushovan Hussain alleging they engaged in fraudulent activities while executives at Autonomy. The lawsuit seeks damages from them of approximately $5.1 billion. HP will not comment further until the proceedings have been served on the defendants.” – HP Spokesperson”.
Deal Gone Bad. Shortly after HP finalized an agreement to buy Autonomy for over $10B back in 2011, the deal began to go sideways.
A year later, HP alleged that it had been bamboozled by Autonomy and that it had played fast and loose with its accounting practices.
“From what has already been discussed for a deal of this size quite limited information relating to Autonomy deals and accounting procedures was released to those involved in the work – they did not have full access nor is it clear that they requested it or had a mandate to gain it,” Pelz-Sharpe said in an email.
By the time HP figured things out, it made allegations about Autonomy’s bookkeeping practices and took an $8.8B write down.
Pelz-Sharpe says the counter-suit by Autonomy is par for the course.
Autonomy executives will have to answer for it one way or another.
All credits to (Ron Miller of TechCrunch)
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