Thursday, 8 January 2009

Class action lawsuit filed in US against Satyam

A lawsuit has been filed in a United States court on behalf of American investors of Satyam Computer Services.

Reports say that law firms in the US have begun filing class-action suits against Satyam and its beleaguered executives for fraud. Two such class action lawsuits -- one by a US law firm Izard Nobel LLP and the other by an investor in Satyam ADS -- have been filed in a district court in New York.

The lawsuits charge the Indian software major, its promoters and top executives with fooling investors, infringing upon securities laws and for manipulating books of accounts.

The lawsuits, say reports, have been filed on behalf of all buyers of Satyam ADS between January 6, 2004 and January 6, 2009.

On Wednesday, Satyam chairman B Ramalinga Raju confessed to cooking the company's books, showing inflated profits for years, and misleading the public and the investors leading to the company's stock sinking by almost 80 per cent, from Rs 179 levels to Rs 39 levels on the Indian stock markets.

The US regulator - the SEC -- had halted trading in the Satyam ADS on the New York Stock Exchange before the US markets opened on Wednesday.

Maytas Infra chairman Sinha quits

Meanwhile, PTI reported that R C Sinha, chairman of the Raju family-promoted Mayats Infrastructure, has resigned. Details awaited.

No comments:

Post a Comment