Satyam to pay US$68 million to settle fraud claims

Mahindra Satyam will pay US$68 million to Aberdeen Global and 22 other funds in order to settle claims for alleged fraudulent misrepresentations.

The allegations of fraudulent misrepresentations were made by the former management of Satyam in London.

In a Bombay Stock Exchange (BSE) filing, Mahindra Satyam said that it signed a confidential settlement agreement to settle these claims made by those who are said to have lost about US$298 million.

Mahindra Satyam has been able to fully and finally dispose the claims through this settlement, according to the company's statement in the BSE filing.

Earlier this year, Mahindra Satyam settled claims by other Aberdeen-affiliated former investors in the United States for US$12 million.

Out-of-court agreement

This out-of-court agreement between Mahindra Satyam and Aberdeen Global has cleared all the external litigations of Mahindra Satyam, which has been in settlement related news for a couple of years now.

It signed a settlement agreement with Upaid Systems, a UK-based provider of mobile payment solutions, for US$70 million in December 2009.

Two years later, in 2011, it made an out-of-court settlement for a class action suit filed by US-based investors on the company's American Depository Shares (ADS) issue for US$125 million.

Mahindra Satyam also settled a litigation with the US SEC (Securities and Exchange Commission) for US$10 million in 2011.

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