Mahindra Satyam, on Thursday, said it had entered into an agreement to settle claims for alleged fraudulent misrepresentations and would pay $68 million (around Rs.369.24 crore) to Aberdeen Global and 22 other funds.
“Mahindra Satyam has signed a confidential settlement agreement, settling claims brought in the Commercial Court in London by Aberdeen Global and 22 other funds (claimants) managed by Aberdeen Asset Management and/or its subsidiaries,” Mahindra Satyam said in a BSE filing.
The claims included certain allegations of ‘fraudulent misrepresentations’ said to have been made by the former management of Satyam in London, it added.
“The claimants have claimed that they have suffered losses of an estimated sum of $298,339,978 and additional consequential losses. By virtue of the settlement, the claims have been fully and finally disposed of on the basis of, inter alia, a payment of $68 million,” the company said in the filing.
In July, 2012, Mahindra Satyam settled claims by other Aberdeen-affiliated former investors brought in the U.S. for $12 million, it said.
A class action brought in the U.S. on behalf of other former investors in the company was also settled in February, 2011, it added. Tech Mahindra took over the reins of the scam-hit Satyam Computer Services in April, 2009, and re-branded it as Mahindra Satyam.
Class action suit
Last year, the IT company had settled out of court a class action suit slapped by U.S.-based investors of the company’s ADS issue for $125 million, and in April, 2011, it settled its litigation with the U.S. Securities and Exchange Commission for $10 million.
In December, 2009, Satyam had entered into a settlement with U.K.-based mobile payment solutions provider Upaid Systems for $70 million. — PTI