Satyam To Pay $125M in US Securities Class Action

New York, NY: Satyam Computer Services has agreed a $125 million settlement of a shareholder class actions. Satyam had argued that the US shareholder litigation should be dismissed because the US is not the home country of the company, and therefore the improper venue for the litigation.

In a filing to the exchanges, the company said it has entered into a stipulation and agreement of settlement with the lead plaintiffs in the putative class action filed against the company in the United States District Court, Southern District Court of New York. It has agreed to pay to the class members as consideration, $125 million, subject to the approval of the Reserve Bank of India and the determination of the Authority for Advance Ruling, and 25% of any net recovery that the company may in the future obtain against any of the PwC-related entities The settlement amount includes taxes, compliance costs, attorney's fees and expenses.

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Published on Feb-18-11