New York, Jan 08: In separate lawsuits filed in US courts, Satyam Computer has been charged with duping thousands of American investors of billions of dollars by artificially inflating share price.

Demanding trial by jury against Satyam Computer, its chairman Ramalinga Raju, managing director and CEO B Rama Raju, the complainants have said that each of them is "liable as a participant in a fraudulent scheme and course of business that operated as a fraud or deceit..."

The IT firm has also deceived the investing public regarding Satyam's business, its finances and the intrinsic value of shares, leading investors to purchase shares at artificially inflated prices, said the class action suit filed by lawfirm Vianale & Vianale LLP on behalf of shareholders.

Another lawfirm Izard Nobel LLP also filed an identical class action suit on the issue at the US District Court for Southern District of New York.

"A lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased the ADRs of Satyam Computer between January 6, 2004 and January 6, 2009," Izard Nobel LLP said in a statement.

The class action complaint filed by Vianale & Vianale LLP in Manhattan Federal Court said that there are thousands of such shareholders throughout the US who have been affected by "a series of false and misleading statements, containing materially inaccurate financial information about the company, which served to artifically inflate the value of its ADSs.

Trading on Satyam ADRs was suspended yesterday after it plunged by over 90 per cent to 0.85 dollars in pre-market trade in US following Satyam founder and chairman B Ramalinga Raju's confession to a Rs 7,800 crore fraud in the company.

When asked about the specific damages sought in the lawsuit, Vianale & Vianale LLP's lawyer Keneth J Vianale told agencies that it could be in hundreds of millions of dollars.

Vianale said in an emailed statement: "We have not alleged a specific damages amount that we are seeking. That will be a subject of expert testimony.

"However, in cases of this sort, it is not unusual for the damages to be in the hundreds of millions of dollars."

Australian cos in disarray over IT export to India: Report Nearly two-billion accounting fraud admitted to by the former Satyam Chairman is likely to cast its shadow over the Australian companies' plans to outsource IT jobs to India, according to a media report.

"Corporate Australia's push to export IT jobs to India is in disarray following a USD 1.84 billion fraud involving one of the key outsourcing companies," Australian daily Herald Sun said.

Telstra, Quantas, Coles National Australia Bank (NAB) and Suncorp are amongst the several Australian companies which has been affected by the Satyam scandal.

According to the report, Satyam Australia employs about 1,700 local staff. Apart from Australian clients Satyam's clientele include Citi Group and Nissan Motor Corp.

The report states that NAB has outsourced nearly 500 positions to India after engaging Satyam and other providers over the past three years.

Besides, Telstra also employs Satyam as one of its major IT contractors.

"Qantas, which signed a USD 71 million software development and maintenance contract with Satyam two years ago, said yesterday that if necessary it could activate alternative arrangements," it said.

Meanwhile, the report added that the "state government was in talks with Satyam about saving jobs of the companies Victorian employees and about the plans the company had for future expansion."

Bureau Report

Australian cos in disarray over IT export to India: Report

Nearly two-billion accounting fraud admitted to by the former Satyam Chairman is likely to cast its shadow over the Australian companies' plans to outsource IT jobs to India, according to a media report.

"Corporate Australia's push to export IT jobs to India is in disarray following a USD 1.84 billion fraud involving one of the key outsourcing companies," Australian daily Herald Sun said.

Telstra, Quantas, Coles National Australia Bank (NAB) and Suncorp are amongst the several Australian companies which has been affected by the Satyam scandal.

According to the report, Satyam Australia employs about 1,700 local staff. Apart from Australian clients Satyam's clientele include Citi Group and Nissan Motor Corp.

The report states that NAB has outsourced nearly 500 positions to India after engaging Satyam and other providers over the past three years.

Besides, Telstra also employs Satyam as one of its major IT contractors.

"Qantas, which signed a USD 71 million software development and maintenance contract with Satyam two years ago, said yesterday that if necessary it could activate alternative arrangements," it said.

Meanwhile, the report added that the "state government was in talks with Satyam about saving jobs of the companies Victorian employees and about the plans the company had for future expansion."

Bureau Report