Connect with us

Company News

Cyber firm Darktrace distances itself from fraud case

British cyber security firm Darktrace on Thursday denied it had been targeted by a fraud probe into US tech giant Hewlett Packard’s 2011 purchase of software group Autonomy.

Darktrace shares have tanked since Wednesday after its chief strategy officer Nicole Eagan was named in a British High Court ruling against former Autonomy boss Mike Lynch, who was accused of inflating his company’s value before the takeover.

HP won a multi-billion-dollar civil fraud case in January, but the full text of the judgement was published only this week.

The US giant sued Autonomy’s founder Lynch and its former chief financial officer Sushovan Hussain, for about $5 billion.

Damages have yet to be confirmed.

Lynch, who denies any wrongdoing, is appealing the judgement.

“Darktrace notes the recent share price movement and also media speculation about the company in relation to the civil proceedings in connection with the sale of Autonomy,” the firm said in a statement Thursday.

“Neither Darktrace nor any of its acting executives was a party to the civil proceedings,” it said, adding that neither were they “the target of any investigation”.

Eagan was chief marketing officer at Autonomy when Lynch sold it to HP.

Judge Robert Hildyard stated in his ruling that Eagan had been “part of a clique” that misrepresented Autonomy’s success prior to the takeover.

But Darktrace on Thursday insisted it saw “no link” between itself and the civil action against Lynch.

Darktrace is based in the English university city of Cambridge and last year floated on the London stock market.

The group uses cutting-edge artificial intelligence technology to combat cyber attacks.

HP purchased Autonomy for $11.1-billion in 2011.

A year later, HP accused Autonomy of inflating its value and causing huge losses for the US giant. AFP

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!