Mahindra Satyam settles US law suit with $70 mn
Posted on: 08:56 PM IST Dec 09, 2009
Hyderabad: Mahindra Satyam on Wednesday said it had settled a US lawsuit filed by Updaid, a client of erstwhile Satyam Computer Services, for $70 million.
"The board approved a settlement agreement between the company and Upaid Systems," Mahindra Satyam said in a statement.
"The company will make first payment in the amount of $45 million within 10 business days satisfying the condition of obtaining such governmental approvals as necessary under Indian law."
The Indian software major added that it would make "a second payment in the amount of $25 million within 12 months after the first payment is made".
With this settlement agreement, all pending actions against the Indian IT bellwether will be dismissed.
London-based online and mobile payment services firm, Upaid Systems, had filed lawsuits in the US federal and state courts in 2007 against Satyam, claiming $1 billion in damages for fraud and forgery.
In 2008, Upaid had sought depositions by Satyam founder-chairman B Ramalinga Raju and chief financial officer Srinivas Vadlamani in a Texas district court, after the Hyderabad firm's aborted bid to buy out promoter group companies Maytas Properties and Maytas Infra.
Upaid accused Satyam of trying to execute a transaction designed to deplete its assets in advance of a judgment.
Tech Mahindra, the IT arm of the Mahindra and Mahindra group, acquired Satyam Computers in April 2009 after Raju stunned the corporate India in January 2009 by confessing to a multi-billion accounting fraud.