HP to Autonomy's ex-CEO Lynch: Have Your Say in Court, Under Threat of Perjury
November 28, 2012 12:25 PM
comment(s) - last by
HP is not moved by Dr. Lynch's "open letter"
and the top brass at Hewlett-Packard Comp. (
) show no signs of backing down from allegations that Autonomy's former owners committed approximately
$5B USD in accounting "improprieties"
, which they suggest amount to fraud. Even as Autonomy's former CEO, co-founder, and co-owner Dr. Mike Richard Lynch fired back with an
regarding errors in HP's accusations, HP has released a new statement making it abundantly clear that it feels it is in the right and plans to press potential criminal penalties via regulators.
In the statement HP acknowledges for the first time officially that UK regulators and their counterparts at the
U.S. Federal Bureau of Investigation
U.S. Security and Exchange Commission
are investigating Autonomy
. The company
The matter is in the hands of the authorities, including the UK Serious Fraud Office, the US Securities and Exchange Commission’s Enforcement Division and the US Department of Justice, and we will defer to them as to how they wish to engage with Dr. Lynch. In addition, HP will take legal action against the parties involved at the appropriate time.
It adds menacingly:
While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders. In that setting, we look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury.
That statement would certainly seems, in a roundabout way, to accuse Dr. Lynch of engaging in further obfuscation/lies in his public statements.
HP suggests ex-Autonomy Corp. CEO, Dr. Mike Lynch, is risking perjuring himself if he repeats his current statements. [Image Source: HP]
The battle between HP and Autonomy's former employees/owners is an intriguing one as it also pits two of the world's largest accounting firms against each other. Autonomy's accounting was done by
, which in a comment to
stated, "[All Autonomy accounting was done] in full compliance with regulation and professional standards."
But according to HP's own accounting super-power,
, forensic audits confirmed grave accounting malfeasance in Autonomy's books.
By the sound of it, the pair is headed on a collision course both in civil court, and potentially in criminal court if UK or U.S. officials determine criminal charges are warranted.
HP claims it was blindsided by Autonomy's "hidden" downsides. [Image Source: Autonomy]
The pending battle is a big risk for HP. While it faces serious image damage in the eyes of consumers by bringing attention to the ugly mess, the move does have a potential payoff to shareholders if HP can win back some of the billions it lost on the purchase in court. However, should HP's claims be invalidated, the company could see all that image damage be for naught, a nightmarish scenario in which both shareholders and corporate image would suffer.
Mike Lynch via the WSJ [PDF]
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RE: Let buyer beware?
11/28/2012 10:42:29 PM
Agree 100%. Any outsider saw this coming from a mile away. HP was trying to put a positive spin on this from day one. They were trying to convince people that this acquisition would magically unlock value with their managed print services and enterprise solutions. The outcome of this is going to be incredibly embarrassing.
"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive
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