Autonomy’s founder Mike Lynch has been involved in a battle of words over HP’s allegations that its acquisition of Autonomy was riddled with accounting improprieties. It apparently took HP quite a few months to figure that out, and Lynch has vociferously denied the allegations.
HP had initially revealed hints of improprieties in the acquisition deal, but the company has now gone official with it by launching a regulatory filing about it. The U.S. Department of Justice and other regulatory authorities in the U.S. have already been looking into the case.
The formal filing makes the authorities all the more able to pursue investigations into the case. HP is apparently trying to write down $5 billion on the pretext of the controversial deal, but many have called the move an attempt by the company to cover up the huge losses it has been incurring year after year.
Mike Lynch has recently released an elaborate statement lambasting HP for calling the acquisition controversial. Lynch has been denying all allegations of financial impropriety right from the start and he has repeatedly cited the reputed law firms which overlooked the acquisition.
His statement also said, ‘Simply put, these allegations are false, and in the absence of further detail we cannot understand what HP believes to be the basis for them. We also do not understand why HP is raising these issues now given that Autonomy reported into the HP Finance team from the day the acquisition completed in October 2011, there was an extensive due diligence process and Autonomy was audited as a public company for many years.’