Major Legal Setback for Widow of Deceased British Tycoon
The estate of a British businessman, who tragically passed away when his luxurious superyacht sank near Sicily, faces more than $1.2 billion in damages from a 2015 lawsuit. This ruling could potentially push his widow toward crippling financial difficulties.
Hewlett-Packard (HP), the US technology giant, has successfully secured a substantial compensation following a lawsuit related to Mike Lynch’s 2011 acquisition of Autonomy, a software company. The London high court determined that Lynch was involved in manipulating the deal prior to the purchase.
Lynch, who died on August 19, 2024, in a yacht accident, was accompanied by five others, including his teenage daughter, Hannah.
The high-profile CEO, once compared to Bill Gates, left behind significant legal and financial turmoil. His estimated estate of $669 million was inherited by his widow, Angela Bacares, 58, who survived the sinking along with 14 others.
This ruling from the high court may lead to Bacares facing bankruptcy in order to settle HP’s claims.
Lynch had been contesting a lawsuit from HP that accused him and Autonomy’s former chief financial officer, Sushobhan Hussain, of orchestrating a deceitful scheme to inflate the company’s value prior to its $11.1 billion acquisition in 2011.
In the original lawsuit filed in 2015, HP claimed it lost $944 million based on the disparity between the actual purchase price and the price they would have agreed to had they been aware of Autonomy’s “true financial position.”
A previous court decision stated that had HP known the accurate financial details, it would have paid £23 ($30.79) per share instead of the £25.50 ($34.15) it did.
This week, the high court denied Lynch’s estate the chance to appeal the ruling, although there is a possibility to seek an appeal at a higher level.
Even though Lynch was immune from criminal charges in the US as of June 2024, the lawsuit from HP remained active.
He consistently maintained his innocence throughout his life until his death.
HP expressed satisfaction with the court’s judgment, which awards it roughly $1.24 billion in damages, seeing it as a step towards resolving the case.
Meanwhile, Bacares is also facing a $250 million lawsuit for “reputational damage” from a lawyer representing the company that constructed the ill-fated superyacht.
Tommaso Bertuccelli, the Italian Sea Group’s lawyer, has accused Bacares and the yacht’s crew of negligence in relation to the sinking. The superyacht, which was carrying 22 individuals, capsized during a powerful storm brought on by a tornado-like phenomenon.
At the time of the incident, the boat was under the ownership of Revtom, a company that listed Bacares as its legal proprietor.
