Hewlett Packard to pursue suit against tech mogul Mike Lynch, who died when his yacht sank

Hewlett Packard Enterprise will pursue a lawsuit against the estate of British tech entrepreneur Mike Lynch, who died in August after his yacht sank off the coast of Sicily.

Britain’s High Court in 2022 ruled mostly in favor of the U.S. technology company, which accused Lynch and his former finance director of fraud over its $11 billion takeover of his software company Autonomy. Hewlett Packard is seeking up to $4 billion in damages, and the judge is expected to issue a decision on the final sum soon.

Lynch died when his yacht, the Bayesian, sank in a storm off Sicily on Aug. 19. His widow, Angela Bacares, could now be liable for the damages. Months before the sinking, Lynch was acquitted in a separate U.S. criminal trial of fraud and conspiracy charges in the deal.

Hewlett Packard initially celebrated the costly acquisition of Lynch’s company in 2011 but quickly came to regret it. The company said in a statement Monday that it had “substantially succeeded” in its civil fraud claims against Lynch and Sushovan Hussain, the former finance director.

“It is HPE’s intention to follow the proceedings through to their conclusion.”

However, the judge in the U.K. civil case has already ruled that the amount payable in damages would be “substantially less” than the company is seeking.

A spokesperson for Lynch’s family declined to comment.

Lynch and his 18-year-old daughter Hannah were among six passengers who died when his 184-foot luxury yacht sank quickly in a storm on Aug. 19. One crew member, the boat’s chef, also died, while 15 people survived the disaster. They had gathered on the yacht to celebrate Lynch’s acquittal.

The incident has raised questions, as another sailboat that had been anchored nearby off the coast of Palermo made it through the storm unscathed.  Officials initially said the yacht was struck by a tornado over the water, known as a waterspout. Prosecutors in Italy are investigating the captain on possible charges including manslaughter.

The captain, engineer and a sailor aboard the yacht, called “Bayesian,” were placed investigation for possible manslaughter in connection with the shipwreck. 

Federal authorities sought for years to extradite Lynch from the U.K. to face multiple counts of fraud and conspiracy in the U.S. related to HP’s acquisition of Autonomy.