Mike Lynch, Founder and Chairman of Autonomy Corporation, poses for photographers at an awards ceremony in central London March 13, 2008.

LONDON | Fri Dec 28, 2012 8:32am EST

LONDON (Reuters) - Mike Lynch, the founder of the software firm sold to Hewlett-Packard last year in a deal tainted by accusations of accounting fraud, said he would defend the company's accounts to U.S. Federal investigators.

HP confirmed in a filing late on Thursday that the U.S. Department of Justice was investigating Autonomy's books.

The PC and printer maker bought the British company for $11 billion last year to lead its push into the more profitable software sector.

Autonomy did not deliver the growth expected, resulting in Lynch's departure earlier this year.

But worse was to come last month when HP wrote off some $5 billion of the company's value and accused its former management of accounting improprieties that inflated its value.

The Silicon Valley company said it had passed information from a whistleblower to the U.S. Department of Justice, the SEC and Britain's Serious Fraud Office.

"On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy," it said in the filing.

"HP is cooperating with the three investigating agencies."

Lynch launched a robust defense of his track record almost immediately after HP made the accusations.

He said on Friday that he was still waiting for a detailed calculation of HP's $5 billion writedown of Autonomy's value and a published explanation of the allegations.

"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," he said in a statement.

"We continue to reject these allegations in the strongest possible terms. Autonomy's financial accounts were properly maintained in accordance with applicable regulations, fully audited by Deloitte and available to HP during the due diligence process."

Lynch said he had not been approached by any regulatory authority, but he would co-operate with any investigation and looked forward to the opportunity to explain his position.

HP has refused to concede to Lynch's demands for more information about the allegations.

"While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders," it said in response to an open letter from Lynch last month

"In that setting, we look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury."

(Reporting by Paul Sandle; Editing by Helen Massy-Beresford)

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Cindy Lee Garcia, an actress in the ''Innocence of Muslims'', an anti-Islam movie that has spawned violent protests across the Muslim world, attends a news conference outside her attorney's office after a court hearing in Los Angeles, California September 20, 2012.

LOS ANGELES | Thu Sep 27, 2012 3:58pm EDT

LOS ANGELES (Reuters) - An actress who said she was duped into appearing in an anti-Islam film that stoked violent protests across the Muslim world took her legal bid to federal court on Wednesday in a renewed effort to force it off YouTube.

The lawsuit filed by Cindy Lee Garcia names the popular online video site YouTube and its parent company Google Inc. as defendants, along with the Egyptian-American Coptic Christian from California believed to be behind the making of the film.

Last week, a Los Angeles Superior Court judge denied Garcia's request for a temporary restraining order that would have required YouTube to stop posting the crudely made 13-minute video, finding the actress was unlikely to prevail on the merits of her case in state court.

As in her previous lawsuit, Garcia accused the purported filmmaker of fraud, libel and unfair business practices. But her federal lawsuit also asserts a copyright claim to her performance in the video, titled "The Innocence of Muslims."

Garcia's case was the first known civil litigation stemming from the video, billed as a film trailer, which depicts the Prophet Mohammad as a fool and a sexual deviant. The clip sparked a torrent of anti-American unrest in Egypt, Libya and dozens of other Muslim countries over the past two weeks.

The outbreak of violence coincided with an attack on U.S. diplomatic facilities in Benghazi that killed four Americans, including the U.S. ambassador to Libya.

U.S. and other foreign embassies were also stormed in various cities across the Middle East, Asia and Africa. For many Muslims, any depiction of the prophet is considered blasphemous.

Google has refused to remove the film from YouTube, despite pressure from the White House and others to take it down, though the company has blocked the trailer in Egypt, Libya and other Muslim countries.

COPYRIGHT ISSUE

Garcia's lawyer argued in court last week that her client, who is from Bakersfield, California, has suffered harm similar to a person whose privacy is violated by the unauthorized release of a sex tape.

But Google's attorneys said that the rights of an actor do not protect that person from how a film is perceived.

In her latest lawsuit filed in U.S. District Court in Santa Clara, California, Garcia says that Google is infringing on the copyright she holds to her performance in the film by distributing the video without her approval via YouTube.

Garcia's lawsuit identifies Nakoula Basseley Nakoula, 55, a Los Angeles-area Coptic man who has served time in federal prison for bank fraud, as the film's producer.

On Saturday, a Pakistani cleric offered a $100,000 reward to anyone who killed the film's maker. Garcia said in her lawsuit that an Egyptian cleric had issued a fatwa, or religious edict, against anyone who served as a director, producer or actor in the video.

According to Garcia, Nakoula operated under the assumed name of Sam Bacile, misleading her and other actors into appearing in a film they believed was an adventure drama called "Desert Warrior."

After the fact, however, she learned that some of her lines spoken in the production had been dubbed over.

The alteration made it look like Garcia "voluntarily performed in a hateful, anti-Islamic production," the lawsuit says, adding that she has "been subjected to credible death threats and is in fear for her life and the life and safety of anyone associated with her."

Nakoula has been in hiding for much of the past two weeks after being questioned by federal authorities looking into whether he may have violated terms of his probation in the making or promotion of the video.

(Reporting by Steve Gorman)

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