HP faced substantial losses after acquiring Autonomy for $11bn in 2011 and later claiming a $5bn financial hit in 2012. A court ruling revealed that the true value of Autonomy was less than the acquisition price, leading HP to be owed nearly £700m. Despite this, the judge found HP's claims exaggerated and attributed its writedowns to a need to counteract market capitalization declines. Autonomy's CEO, Mike Lynch, passed away in August 2024, and a posthumous statement reflected concerns about misleading shareholders regarding HP's damages claim.
Justice Robert Hildyard said: "I consider that HP's claim was always substantially exaggerated:...the figure was not based on detailed analysis."
HP is owed almost £700m due to the difference between the acquisition price of Autonomy and the price based on the company's true financial position.
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