Mike Lynch, the British tech entrepreneur who went missing after his luxury yacht sank near Sicily, had recently cleared himself of a U.S. criminal fraud case related to the sale of his software company to Hewlett Packard Co. Lynch, 59, was on the yacht, named Bayesian after a renowned British mathematician, with his wife and several advisors when a violent storm struck. They were celebrating Lynch’s recent acquittal from accusations that he had misled HP into overpaying for his company, Autonomy Corp.
Known at times as “Britain’s Bill Gates,” Lynch has worked to rehabilitate his image as a top European entrepreneur. He has long maintained that he was made a scapegoat for the acquisition, in which HP purchased Autonomy for $11 billion in 2011, leading to an $8.8 billion write-down the following year.
Despite his acquittal on criminal charges, Lynch is still entangled in a civil lawsuit in London, where a judge found him liable for presenting a misleadingly inflated picture of Autonomy’s success.
Lynch’s software firm was notable for its ability to extract valuable information from unstructured data, propelling him to become one of the most recognized tech figures in the UK. He was named Entrepreneur of the Year in 1999 by the Confederation of British Industry and recognized as one of Time magazine’s most influential technology leaders in Europe in 2000.
He was awarded an Order of the British Empire in 2006 and served as a non-executive director at the BBC. Lynch has advised former British Prime Ministers David Cameron and Theresa May.
Following the HP deal, he reportedly earned at least $500 million and went on to establish the venture capital firm Invoke Capital, which spawned several tech companies, including the successful cybersecurity firm Darktrace Plc. In 2015, Forbes estimated his net worth at $1 billion, the only year he appeared on its global billionaires list.
Lynch and the former financial chief of Autonomy faced allegations from HP and U.S. prosecutors claiming they used accounting manipulations to inflate company revenues pre-sale. During the trial, Lynch testified that he was unaware of many offenses attributed to him, asserting that he delegated significant responsibilities to his team.
Autonomy was initially viewed as a triumph for UK technology and the Cambridge tech landscape. However, HP accused Autonomy of accounting irregularities in 2012, prompting a lawsuit. Lynch opted to contest the civil case in London first, hoping that a ruling at home would favor his defense.
Throughout the UK trial, Lynch presented evidence that HP was marred by internal conflicts and instability, particularly after Meg Whitman took over as CEO just as the Autonomy deal closed. The trial revealed documents indicating infighting among HP executives.
After one of the most extensive and costly trials in British history, Judge Robert Hildyard concluded in 2022 that Lynch and Autonomy had engaged in fraudulent practices that inflated the company’s value. He indicated that the case would forever link Lynch, his company, and its innovative product with fraud.
While the judge had yet to determine the final damages, HP was pursuing $4 billion from Lynch and his former finance chief but was warned that the actual amount could be substantially lower.
Despite the impending civil penalties, Lynch expressed his eagerness to return to the UK and focus on his career and family following his release from house arrest after the jury cleared him of criminal allegations.