Advertisement

HindustanTimes Sat,12 Jul 2014

Ex-directors of Satyam win ruling in US class-action suit

Reuters  New York, January 03, 2013
First Published: 20:55 IST(3/1/2013) | Last Updated: 22:12 IST(3/1/2013)

A US federal judge dismissed claims against former directors of Satyam Computer Services Ltd in shareholder lawsuits stemming from the massive fraud at the heart of India’s largest corporate scandal.

Advertisement

US district judge Barbara Jones in New York ruled on Wednesday the lawsuits failed to allege that the ex-directors recklessly failed to discover the fraud.

In her decision on Wednesday  Jones said the allegations primarily focused on the actions of a small group of insiders reinforcing an inference the audit committee’s members “were themselves victims of the fraud.” http://www.hindustantimes.com/Images/Popup/2013/1/04_01_biz6.jpg

Satyam shareholders began filing lawsuits in 2009 after the scandal broke.

In 2011 Satyam, now called Mahindra Satyam and its auditor PricewaterhouseCoopers  agreed to pay $125 million and $25.5 million, respectively, to settle claims filed by shareholders.

That same year, Satyam and PwC agreed to pay $17.5 million to settle claims made by the US Securities and Exchange Commission and Public Company Accounting Oversight Board.

The 2011 settlements did not include Satyam’s former directors, who continued to litigate the case that ultimately ended in Wednesday’s ruling.


Advertisement
more from Business

Doubling of tax on debt mutual funds to hit retirees

On Thursday, finance minister Arun Jaitley gave investors and the mutual fund industry a jolt by increasing the long-term capital gains tax on debt mutual funds to 20% from 10%. The definition of long-term has also been changed to 36 months for non-equity MFs from 12 months.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved