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

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
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

r
HealthHealth
The quiet $8 billion crisis: long COVID costs keep rising as Washington looks away
By Bruce Y. Lee, Hannah Dimmick and The ConversationMay 24, 2026
6 hours ago
40 is the new 50: Millennial jobseekers are giving their resumes a facelift by hiding years of experience to land jobs
Future of WorkCareers
40 is the new 50: Millennial jobseekers are giving their resumes a facelift by hiding years of experience to land jobs
By Jacqueline MunisMay 24, 2026
9 hours ago
bofa
AIProductivity
BofA says you’ll be 10x more productive with AI. Ignore the 0.1% result so far
By Nick LichtenbergMay 24, 2026
10 hours ago
David Bennahum
CommentaryMedia
I was one of the internet’s first influencers. AI just killed the whole category — and created something better
By David S. BennahumMay 24, 2026
12 hours ago
Marc Perry, Toyota Alabama president and Jack Crowley in the lab with the students.
AIJobs
As AI wipes out white-collar jobs, one Alabama high school and Toyota are training students for roles that pay $40 an hour and can’t be automated
By Jake AngeloMay 24, 2026
13 hours ago
gf
SuccessEntrepreneurship
Meet the 32-year-old who is America’s only full-time spelling bee coach — he charges up to $180 per hour
By Ben Nuckols and The Associated PressMay 23, 2026
1 day ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
3 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
2 days ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
2 days ago
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
Lifestyle
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
By Sasha RogelbergMay 24, 2026
9 hours ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
5 days ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
2 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.