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