Angela Bacares inherits Mike Lynch's 13-year legal battle with HP: Here's why they won't drop the $4 billion lawsuit

In a move that shocked many, Hewlett Packard (HP) confirmed yesterday that it intends to continue its lawsuit against the family of the late Mike Lynch for up to $4 billion in damages despite his recent tragic death. The announcement is a devastating blow to the Lynch family, who are still reeling from the loss of their patriarch and others in a yachting accident earlier this month.

The tragic incident: A stormy end to a celebrated life

Mike Lynch, often referred to as the “Bill Gates of Britain”, died prematurely when his superyacht capsized during a sudden storm off the coast of Sicily. The luxury vessel had 22 passengers on board at the time, but only 15, including Lynch's wife Angela Bacares, survived. Rescue teams later recovered five bodies from the wreck, including Lynch, his daughter Hannah and his lawyer Chris Morvillo.

The tragedy came just as Lynch was celebrating a major legal victory in a decades-long legal battle with HP. His daughter Hannah was heartbreakingly found alone in her cabin, underscoring the personal toll this ongoing legal battle has taken on the Lynch family.

A dispute rooted in the sale of Autonomy

The origins of this lengthy legal battle date back to 2011, when HP acquired Lynch's software company Autonomy for $11 billion. At the time, the deal was touted as a game-changer that would catapult HP, a traditionally hardware-focused company, into a new era of software innovation. But just a year later, HP wrote off $8.8 billion of the purchase price and accused Lynch of grossly inflating Autonomy's financials.

The fallout from the acquisition led to a series of fierce legal battles that lasted for more than a decade. Lynch, who had been praised for his visionary leadership, found himself at the center of a barrage of allegations. Federal prosecutors in the United States eventually brought charges against Lynch and Stephen Chamberlain, Autonomy's former vice president of finance.

Legal disputes on both sides of the Atlantic

Lynch's legal problems culminated in a three-month criminal trial in San Francisco earlier this year. After two days of deliberation, the jury acquitted Lynch and Chamberlain of all charges. Lynch's legal team celebrated the verdict as long-overdue satisfaction. “The truth has finally prevailed,” said Morvillo, who tirelessly defended Lynch throughout the trial.

The victory did not last long, however. Chamberlain, who had returned to Britain after the trial, was tragically killed in a hit-and-run accident near his home. Just a week later, Lynch and Morvillo met the same fate in the catastrophic yacht accident.

HP's relentless hunt: No end in sight

Despite the tragic circumstances, HP has shown no intention of letting the matter rest. In a statement to Business Insider, HP reiterated its determination to see the legal process through to its conclusion. “In 2022, a judge in the English High Court ruled that HPE had substantially succeeded in its civil fraud claims against Dr. Lynch and Mr. Hussain,” a company spokesperson said. “A damages hearing took place in February 2024 and the judge's decision regarding the damages to which HPE is entitled will be made in due course.”

This ongoing litigation has been the subject of intense scrutiny and debate. Observers have questioned the logic behind HP's relentless approach, especially in light of recent tragedies. Critics argue that HP should consider the human cost of its actions, especially given that the litigation has already lasted more than a decade and resulted in significant personal losses for those involved.

The Lynch family's reaction: A plea for privacy

Following the accident, a spokesperson for the Lynch family issued a poignant statement expressing their deep sadness and gratitude for the support received. “The Lynch family is devastated, in shock and is being comforted and supported by family and friends,” the statement said. “Their thoughts are with everyone affected by the tragedy. They would like to sincerely thank the Italian Coast Guard, emergency services and everyone who helped with the rescue. Their only request now is that their privacy is respected at this time of unspeakable grief.”

As Business Insider continues to follow this saga, the question remains: Will HP reconsider its lawsuit that has already caused so much damage? For now, it looks like Angela Bacares, Lynch's widow, will inherit not only his legacy but also the immense burden of this ongoing legal battle. The eyes of the business community are now on Bacares, who faces the daunting task of defending her late husband's reputation against the relentless demands of a multinational corporation.