Satyam settles with Aberdeen in US

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By The Telegraph Online
  • Published 30.07.12

Hyderabad, July 29 (PTI): Mahindra Satyam has entered into an agreement with Aberdeen Claims Administration Inc to settle charges of losses because of the Satyam scam filed in a US district court for $12 million (Rs 66.7 crore).

Aberdeen — representing 20 investors who purchased the company’s common stock and American depository shares (ADS) prior to January 7, 2009 — has alleged that investors suffered losses of $68 million after the Satyam scam broke out.        

“Under the settlement, the company is required to inter alia deposit in an escrow, an amount of $12 million (equivalent to Rs 66.7 crore),” Mahindra Satyam informed the stock exchanges yesterday.

“The obligations incurred pursuant to the settlement are in full and final disposition of the action initiated by Aberdeen in the US District Court for the Eastern District of Pennsylvania, subsequently transferred and currently pending in the US District Court for the Southern District of New York,” it said.

The company said the settlement itself was subject to the entry of an appropriate consent order by the court that has not been delivered till date.        

The Hyderabad-based information technology major still faces a lawsuit filed by Aberdeen Asset Management in a British court seeking over $150 million in damages.

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.

Tech Mahindra took over the reins of the scam-hit Satyam Computer Services in April, 2009, and rebranded it as Mahindra Satyam.