Mahindra Satyam shares up after SEC settlement

Posted By: Religare
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On Wednesday, Satyam Computer Services Ltd. closed 6.66% after the company and its former auditorPriceWaterhouseCoopers (PWC) agreed collectively to pay USD 17.5 million to clear their charge againstaccounting fraud that surfaced in 2009.

The stock started trading at Rs 71.05 in the morning, and touched an intraday high of Rs 77.15 beforeclosing at Rs. 75.30. On Tuesday, the stock had closed at Rs. 70.60. The stock had registered a 52-weekhigh of Rs. 113.80 on September 23, 2010 and a 52-week low of Rs. 54.50 on February 10, 2011.

On Tuesday, Satyam Mahindra, formerly Satyam Computer Services Ltd., had agreed to pay a charge ofUSD 10 million, towards settlement of charges levied by the U.S. Securities and Exchange Commission(SEC) on the company. The company was charged for fraudulently inflating revenue, income and cashbalances by over USD 1 billion over a five year period.

Satyam's former auditor PWC has also agreed to pay USD 7.5 million in record settlements of fraud-related charges by the SEC and the Public Company Accounting Oversight Board.

In the recent past, the company even decided to pay a charge of USD 125 million to settle an allegedclass action suit filed against it in USA. It was also charged USD 70 million by Upaid Systems Ltd, theUK-based company, in 2009 as the later filed a case against the former"s fraud and forgery in the year2005.

Read more about: mm finservices
Story first published: Thursday, April 7, 2011, 13:02 [IST]
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