Aberdeen Global sues Satyam for $150 mn in UK Court

Posted By: Religare
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Aberdeen Global sues Satyam for $150 mn
The country's leading IT company Mahindra Satyam said that it has received a claim of over USD 150 million from Aberdeen Global & Others for their alleged losses due to investment made in the company's stock.

"A claim form addressed to company's branch office at UK, as filed before the High Court of Justice, Queen's Bench Division, Commercial Court, UK, for an amount to be assessed, has been received from Aberdeen Global & Others," said Mahindra Satyam in its filling to Bombay Stock Exchange.

Formerly known as Satyam Computer Services, the company said the claim charged an estimated loss in excess of USD 150 million, opportunity loss and interest at 8 per cent, due to the investment made in the Satyam's stock and/or ADSs.

Commenting on the legal notice, the company said, "We have already informed this issue during the last quarter results that there may be a few more claims from some investors."

"We have received formal notice two days ago. Our legal teams are working on that and we will soon reply to the claim," the company added.

The legal notice came after Mahindra Satyam's shares stopped trading on NSYSE this year. The company has been barred from trading on NSYSE after the accounting scam made by the founder B Ramalinga Raju came to light in 2009.

The company was later acquired by Tech Mahindra via a formal public auction process in 2010, following which Mahindra Satyam had agreed to pay USD 125 million (over Rs 587 crore) in an out-of-court settlement to end a bunch of class action suits filed in the US against the accounting scam.

Recently, the board of the company has announced its merger with fellow group company Tech Mahindra.

Dion Global Solutions Ltd

Read more about: satyam computer services
Story first published: Monday, April 9, 2012, 9:31 [IST]
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