Mike Lynch, the founder of Cambridge-based tech company Autonomy, is being sued by Hewlett-Packard (HP) in what's believed to be the biggest civil fraud trial in the UK.
The court heard expletive-ridden emails from the tech boss as the case opened today (March 25).
HP is suing Lynch and his former chief financial officer Sushovan Hussain for around five billion US dollars (£3.8bn).
The two men deny the claim that they "artificially inflated Autonomy's reported revenues, revenue growth and gross margins".
Outlining the case for HP, Laurence Rabinowitz QC said Lynch and Hussain had knowingly caused Autonomy to "engage in a programme of widespread and systematic fraudulent" accounting practices ahead of the sale.
In a written opening, Mr Rabinowitz said Lynch was "a controlling and demanding individual, who took a close interest in the progress of individual deals and sales generally", and it was "inconceivable" that he was unaware of fraudulent practices.
Mr Rabinowitz pointed to an email sent by Lynch to employees covering a deal that was in jeopardy of not happening. The email read: "If there is any problem I WANT TO KNOW ABOUT IT IN A F****** MILLISECOND from all of you."
The barrister added: "This is not the stance of a statesman viewing the business from 10,000 feet."
"You are f****** toast"
Mr Rabinowitz also referred to another email sent by Lynch to a sales representative in August 2010.
Lynch wrote: "You ever send me an email like this again AFTER the event and you are f****** toast, I swear if I could squeeze down a telephone line to California you would get to know directly how the f*** I feel about this."
Robert Miles QC, representing Lynch, said in written submissions that when HP bought Autonomy the company was "highly profitable" and "had a bright future".
Mr Miles argued that HP "mishandled the acquisition", adding: "Even the announcement of the bid was poorly managed, as it coincided with the announcement by HP of poor trading results, deteriorating prospects and the closure (or potential disposal) of significant parts of its business."
Mr Rabinowitz added that the firm also used "a variety of other fraudulent devices" to either accelerate revenue or to invent revenue that never existed in the first place.
He told the the court: "Once these fraudulent practices are stripped away, it becomes clear that, in truth, the Autonomy group was experiencing little growth and was falling consistently short of market expectations."
Robert Miles QC, representing Lynch, said in written submissions that when HP bought Autonomy the company was "highly profitable" and "had a bright future".
Mr Miles argued that HP "mishandled the acquisition", adding: "Even the announcement of the bid was poorly managed, as it coincided with the announcement by HP of poor trading results, deteriorating prospects and the closure (or potential disposal) of significant parts of its business."
He said that, as a result of "various failings", HP's "planned synergies were never achieved".
'Autonomy worth as much as $50 billion'
He also submitted that HP had previously calculated that Autonomy could be worth as much as 50 billion US dollars once integrated into its company.
In a statement ahead of the hearing, a spokesman for Mr Lynch - who was present in court on today - said there was "no fraud at Autonomy" and that the case "distils down to a dispute over differences between UK and US accounting systems".
The spokesman added: "The real story is that HP, after a history of failed acquisitions, botched the purchase of Autonomy and destroyed the company, seeking to blame others. Mike will not be a scapegoat for their failures."
In separate criminal proceedings in the US, Lynch faces 17 charges of securities fraud, wire fraud and conspiracy in a federal court over the sale of Autonomy and, if found guilty, could face up to 25 years in jail.
Hussain was convicted last April in the US of wire fraud and other crimes related to Autonomy's sale and is due to be sentenced in May, but is expected to appeal against his conviction.
The High Court hearing before Mr Justice Hildyard, which is due to finish in December at the earliest, continues.
Mike Lynch's net worth
Lynch is said to be worth at least $1 billion.
He co-founded tech company Autonomy Corporation in 1996.
He then sold it to HP for $11 billion in 2011, but was then subsequently fired by the company the next year.
Following HP bringing this fraud case against him, Lynch has launched a counter-claim for at least 125 million dollars (£95 million) in damages against HP for "a series of false, misleading and unfair public statements" about his alleged responsibility for supposed accounting irregularities and misrepresentations at Autonomy.
