All the latest UK technology news, reviews and analysis


Mike Lynch slams HP over Autonomy allegations

27 Nov 2012
Dr Mike Lynch is the founder of Autonomy

Autonomy founder and former chief executive Mike Lynch has launched a scathing attack on HP the week after the US tech giant claimed the firm had falsified its accounts to inflate its worth.

HP's claims led the firm to take an $8.8bn write down on the acquisition of the UK firm after a whistle-blower raised concerns over deals made by Autonomy.

HP said it would take all necessary action to recover whatever lost finances it could.

Lynch strongly denied these accusations when they first came to light and in an open letter released on Tuesday called on the HP board to be more transparent regarding the specifics around the allegations.

"It was shocking that HP put non-specific but highly damaging allegations into the public domain without prior notification or contact with me, as former chief executive of Autonomy," he said.

"Having no details beyond the limited public information provided last week, and still with no further contact from you, I am writing today to ask you, the board of HP, for immediate and specific explanations for the allegations HP is making."

Lynch added that HP should provide him with "the interim report and any other documents" which the firm is said to have provided to the SEC and UK Serious Fraud Office rather than relying on gathering information second hand via the media.

He also outlined a number of key points he wants HP to clarify, including:

  • The publication of the calculations used to determine the $5bn impairment charge
  • Whether HP can confirm that no part of the $5 billion write down was, or should be, attributed to its "operational and financial mismanagement" of Autonomy since the acquisition?
  • The number of people employed by Autonomy in September 2011 that have left or resigned under the management of HP?
  • Why HP senior management apparently waited six months to inform its shareholders of the possibility of a material event related to Autonomy?

Lynch ended by voicing his despair with the way the acquisition of his firm has turned out.

"Autonomy joined forces with HP with real hopes for the future and in the belief that together there was an opportunity to make HP great again," he said.

"I have been truly saddened by the events of the past months, and am shocked and appalled by the events of the past week."

  • Comment  
  • Tweet  
  • Google plus  
  • Facebook  
  • LinkedIn  
  • Stumble Upon  
Dan Worth
About

Dan Worth is the news editor for V3 having first joined the site as a reporter in November 2009. He specialises in a raft of areas including fixed and mobile telecoms, data protection, social media and government IT. Before joining V3 Dan covered communications technology, data handling and resilience in the emergency services sector on the BAPCO Journal

View Dan's Google+ profile

More on Law
What do you think?
blog comments powered by Disqus
Poll

Windows 10 poll

What are your first impressions of Windows 10?
13%
4%
10%
4%
21%
4%
44%

Popular Threads

Powered by Disqus
V3 Sungard roundtable event - Cloud computing security reliability and scalability discussion

CIOs debate how to overhaul businesses for the digital era

V3 hosts roundtable with Sungard Availability Services

Updating your subscription status Loading
Newsletters

Get the latest news (daily or weekly) direct to your inbox with V3 newsletters.

newsletter sign-up button
hpv3may

Getting started with virtualisation

Virtualisation can help you reduce costs, improve application availability, and simplify IT
management. However, getting started can be challenging

ibmv3may

Converting big data and analytics insights into results

Successful leaders are infusing analytics throughout their organisations to drive smarter decisions, enable faster actions and optimise outcomes

Technology Product Manager

A Technology Product Manager is required to join a Global...

IT Infrastructure Manager

Closing Date: 13/10/2014 Working within a diverse and...

IT Development Manager

This is a unique and senior opportunity to establish...

Java Developer Chance to Learn (Scala + Hadoop)

Java Developer Chance to Learn (Scala + Hadoop) Join...
To send to more than one email address, simply separate each address with a comma.