Satyam settles Aberdeen, other claims for $68 mn
IT firm Mahindra Satyam today said it has entered into an agreement to settle claims for alleged fraudulent misrepresentations and will pay $68 million (around Rs 369.24 crore) to Aberdeen Global and 22 other funds.business Updated: Dec 13, 2012 20:47 IST
IT firm Mahindra Satyam on Thursday said it has entered into an agreement to settle claims for alleged fraudulent misrepresentations and will pay $68 million (around Rs. 369.24 crore) to Aberdeen Global and 22 other funds.
"Mahindra Satyam company has signed a confidential settlement agreement, settling claims brought in the commercial court in London by Aberdeen Global and 22 other funds (claimants) managed by Aberdeen Asset Management and/or its subsidiaries," Mahindra Satyam said in a BSE filing.
The claims included certain allegations of "fraudulent misrepresentations" said to have been made by the former management of Satyam in London, it added.
"The claimants have claimed that they have suffered losses of an estimated sum of $298,339,978 and additional consequential losses. By virtue of the settlement, the claims have been fully and finally disposed of on the basis of, inter alia, a payment of $68 million," the company said in the filing.
In July 2012, Mahindra Satyam settled claims by other Aberdeen-affiliated former investors brought in the US for $12 million, it said.
A class action brought in the US on behalf of other former investors in the company was also settled in February, 2011, it added.
Tech Mahindra took over the reins of the scam-hit Satyam Computer Services in April, 2009, and rebranded it as Mahindra Satyam.
Last year, the IT company had settled out of court a class action suit slapped by US-based investors of the company's ADS issue for $125 million, and in April 2011 it settled its litigation with the US Securities and Exchange Commission for $10 million.
In December 2009, Satyam had entered into a settlement with UK-based mobile payment solutions provider Upaid Systems for $70 million.
Mahindra Satyam scrip was trading at 1140 hours at Rs. 103.40 apiece on the BSE, down 0.39%.