Menu
Ex-Autonomy chief Lynch slams HP, CEO Whitman ahead of shareholder meeting

Ex-Autonomy chief Lynch slams HP, CEO Whitman ahead of shareholder meeting

Lynch: Whitman has kept shareholders in the dark regarding its Autonomy accounting claims

Hewlett-Packard's November 2012 decision to write off billions of dollars in connection with the acquisition of infrastructure software vendor Autonomy continues to dog the company as it prepares to face shareholders at an annual meeting Wednesday.

HP took a US$8.8 billion write-down on Autonomy, attributing the bulk of it to alleged accounting improprieties at the company before the $11.1 billion acquisition in October 2011. It has since engaged in a public battle with Autonomy's founder and former CEO, Mike Lynch, who has denied any wrongdoing.

Lynch, who left HP shortly after the deal closed, issued a public letter to HP shareholders on Wednesday, saying HP CEO Meg Whitman has made a series of "incendiary and defamatory accusations" while keeping investors in the dark regarding key details of HP's allegations.

"The evidence shows that HP is not just smearing us, but also misleading you, its shareholders," Lynch wrote. "I ask you to help put things right."

Since the write-down, "HP has not provided information or evidence to the Autonomy team to substantiate any allegation," Lynch added. "Instead, it has selectively leaked documents and information to the international media, frequently using material taken out of context to create false impressions and smear our reputations."

Senior HP executives, "fully understood Autonomy's accounting methods from when they took over the company in October 2011," in contrast to HP's claim that it didn't gain such knowledge until a whistleblower stepped forward after the deal closed, Lynch said.

For example, "HP says it 'eventually learned that a portion of Autonomy's revenue were related to hardware sales,'" Lynch's letter adds. "Yet documents show that HP knew about Autonomy's hardware sales from October 2011. Does HP still maintain it knew nothing before June 2012?"

HP should release the full details supporting its allegations, Lynch said.

While a number of HP shareholders have sued the company in connection with the Autonomy controversy and write-down, HP has yet to file suit against Lynch.

Authorities in the U.S. and U.K. have launched probes into the matter.

In a statement Wednesday, HP spokesman Michael Thacker didn't address Lynch's letter directly.

"As HP has previously reported, it uncovered numerous accounting irregularities at Autonomy prior to its acquisition by HP," he said. "HP reported those irregularities to appropriate civil and criminal regulators in the US and UK. HP continues to cooperate in ongoing investigations by those regulators."

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesCivil lawsuitsMeg Whitmanlegalsoftwarefinancial resultsMike LynchinvestmentsHewlett-PackardpersonnelAutonomy

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments