Thursday, May 10, 2018

Satyam Computers Services to Pay $125 Million to Settle US Litigation in US Court

Mahindra Satyam, formerly known as Satyam Computer Services, today said it has agreed to pay $125 million to settle a clutch of class action suits filed against the company in a United States District Court.

According to Mahindra Satyam chairman Vineet Nayyer, the amount will be delivered to the plaintiffs once the US Court judge gives final approval to the settlement deal, which may take around four months.

"The $125 million will come from cash reserves which are at Rs 2,900 crore at the last count. So we don't see any problem in getting money. The amount will be put in an escrow account in a few days' time," Nayyer said.

"We will have to get the Reserve Bank approval. Once the approval comes, then this money will be transferred to plaintiffs and distributed," he added. Furthermore, the company will also pay the lead plaintiffs 25 per cent of any net recovery that it may obtain in future from PricewaterhouseCoopers-related entities that helped Satyam Computer founder Ramalinga Raju perpetrate the fraud.

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