Mahindra Satyam agrees to pay $125 million to settle US suit

Mahindra Satyam has agreed to pay $125 million, subject to the approval of the Reserve RBI, and 25% of any net recovery that the company may in the future obtain against any of the PwC-related entities

Mumbai: Mahindra Satyam, formerly known as Satyam Computer Services, today said it has agreed to pay $125 million to settle a putative class action suit filed against the company in a United States District Court, reports PTI.

The litigation relates to the 2009 accounting fraud at Satyam Computer, which was later taken over by Tech Mahindra and renamed.

Furthermore, the company will also pay the lead plaintiffs 25% of any net recovery that it may obtain in future from PricewaterhouseCoopers (PwC) related entities that helped Satyam founder B Ramalinga Raju perpetrate the fraud.

"The company has agreed to pay to the class members as consideration $125 million, subject to the approval of the Reserve Bank of India (RBI) and the determination of the authority for advance ruling and 25% of any net recovery that the company may in the future obtain against any of the PwC-related entities," Mahindra Satyam said in a filing to the Bombay Stock Exchange.

The settlement amount includes taxes, compliance costs, attorney's fees and expenses, the filing added.

If the settlement is approved by the court, the claims against Satyam would be released by the lead plaintiffs, it said.

The filing also noted that the settlement is exclusively for and on behalf of the company and does not affect the other defendants to the class action litigation.

User

Is China overheating?

Foreign Direct Investment is up 23.40% to $10 billion last month from the year-ago period.

Read Article...

User

Cartoon of the week

May the Force be with the President!

View Cartoon...

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)