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US jury acquits ex-Autonomy CEO Lynch and VP Chamberlain of HP/Autonomy wire fraud and conspiracy charges; Northern District of California trial, severed obstruction count under consideration

Published on: 10 June 2024

Published by a Law360 reporter
Legal News
Article summary

After two days of deliberation, a 12-strong jury returned a unanimous decision acquitting both men of conspiring to commit wire fraud and of 15 associated wire fraud counts. Prosecutors had linked the alleged fraud to particular Autonomy emails, press releases and earnings reports, as well as to due diligence conference calls between Autonomy leaders and HP counterparts in the months before the takeover. The felony conspiracy and fraud allegations each carried potential sentences exceeding 20 years. The 6 June 2024 verdict closes an eleven-week trial centred on claims that Lynch and Chamberlain, alongside colleagues at the British software firm, misled HP—formerly Hewlett Packard—about Autonomy’s operations and financial condition ahead of the Silicon Valley giant’s 2011 purchase of the company for US$11.7bn. As the decision was delivered, Lynch briefly covered his face and eyes before his wife hurried over to hug him. Chamberlain’s wife was heard in tears. Once the jurors were released, Lynch left the courtroom with his wife and declined to comment on the outcome...

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