>From https://www.freedesktop.org/software/systemd/man/logind.conf.html:
"If the system is inserted in a docking station, or if more than one display is 
connected, the action specified by HandleLidSwitchDocked= occurs; otherwise the 
HandleLidSwitch= action occurs."

In my case I don't have a docking station nor any other monitor attached
to the laptop, so as Pranav suggested, there may be some issues with
detecting the laptop as being docked or as having other connected
monitors?

My machine has an Optimus card, with both Intel and Nvidia chips, could
this be related to the bug? Any of you have machines with this system
too?

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https://bugs.launchpad.net/bugs/1574120

Title:
  Notebook doesn't suspend when lid is closed after update to 16.04

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