Employees outside the office of Satyam Computer in Hyderabad on Thursday. (AP)

Mumbai, Jan. 8: Satyam Computer Services and its embattled promoter B. Ramalinga Raju have been sucked into a legal battle in the US.

Two US-based law firms — Izard Nobel LLP and Vianale & Vianale LLP — have filed class action lawsuits against Satyam on behalf of American depository share (ADS) holders of the software services company. Among them, Vianale & Vianale has also targeted Ramalinga Raju and Satyam’s managing director B. Rama Raju.

The story does not end here. Satyam Computer’s auditors — PricewaterhouseCoopers — may also be embroiled in the law suit as one of the law firms has held the firm liable.

According to Izard Nobel, a class action is a lawsuit brought on behalf of many people who have been harmed in a “similar manner”.

A statement from Vianale & Vianale LLP said it filed a class action lawsuit on January 7 on behalf of purchasers of ADS of Satyam during the period January 6, 2004 through January 6, 2009. It added that the action was pending in Manhattan federal court, Case No. 09-CV-00093.

The complaint alleged that the company and its top executives violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading financial statements.

“If you bought Satyam ADS’s from January 6, 2004 through January 6, 2009, no later than 60 days from today, you may move the court to appoint you as lead plaintiff, a representative party that acts on behalf of other class members,” Vianale & Vianale appealed to the ADS holders.

A lead plaintiff in such a class action suit is a class member appointed by the court to act as the representative of the class to pursue the litigation.

Speaking to The Telegraph from Florida, Kenneth J. Vianale, the firm’s principal, said the plaintiff in this case was Aekta Ben Patel, an ADS holder.

While pointing out that the case could drag on for two to three years, Vianale said the law firm could go after the auditors as well “if it is established that they knew of the fraudulent practices or were reckless in not knowing that such practices were being committed”. “The auditors can be held liable under the US laws,” he said.

On whether a company with little or no resources would be in a position to recover money, he said the company could depend on the directors’ and officer liability insurance which most have. The indication is that a compensation upwards of $100 million will be sought from Satyam Computer.