UK authorities drop HP Autonomy fraud probe

The U.K.’s Serious Fraud Office has dropped its investigation into Hewlett-Packard’s allegations of fraud by the management of British big data firm Autonomy, which HP bought in 2011.

In a statement Monday, the SFO said there was “insufficient evidence for a realistic prospect of conviction,” and handed jurisdiction over the case to its American counterparts. There was little detail in the SFO’s statement, as it does not want to undermine the investigations that are still being carried out by the U.S. Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI).

HP alleged that Autonomy misrepresented its financials ahead of HP’s¬†disastrous $11 billion acquisition, which led to a $5 billion write-down and contributed to the defenestration of HP CEO Leo Apotheker.¬†Autonomy’s former management, led by erstwhile CEO Mike Lynch, strenuously deny the allegations (and set up a website to put across their version of events.)

“As the SFO made clear, the U.S. authorities are continuing their investigation and we continue to cooperate with that investigation,” HP said in a statement. “HP remains committed to holding the architects of the Autonomy fraud accountable.”

HP’s shareholders also sued the company for not performing due diligence on the acquisition and, while those two parties agreed to settle in mid-2014, the courts have repeatedly blocked this settlement for giving HP too much protection from further suits.

This article was updated on January 20th to include HP’s statement.

Augmented reality app Taggar gets funding from former Autonomy chief Lynch

Former Autonomy boss Mike Lynch has invested in a company called Neurence through his Invoke Capital fund. Based in Cambridge, the firm was itself formed by former employees of Autonomy’s Aurasma augmented-reality (AR) division after HP(s hpq) bought Autonomy. Neurence has a new iPhone AR app called Taggar, which lets users overlay their own photos, videos and stickers on top of real-world objects, for viewing by other users when they hold their phone up in front of the object. Invoke’s previous investment, in September, was a Cambridge security firm called Darktrace.

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Meg Whitman’s claims that Autonomy executives deliberately misled HP over its $11 billion acquisition are under investigation by the authorities. But whatever the truth, the damage is already done, as the affair further erodes the fragile relationship between Silicon Valley and Europe’s brightest technology companies.

Report: Feds look into HP claims of Autonomy fraud

The Federal Bureau of Investigation is looking into HP’s allegations that former Autonomy management misled the company about its books, according to a Bloomberg News report. The SEC brought in the FBI because criminal acts have been alleged by HP management.

Former Autonomy execs reject HP’s fraud charges

Autonomy’s former management, including Mike Lynch, deny HP charges that they misled, practiced bad accounting and failed to disclose key information to HP prior to its acquisition of Autonomy. HP has asked the US and UK authorities to pursue a criminal investigation.