Satyam sued for $150 million

Ahead of its much-hyped merger with Tech Mahindra, Satyam Computer Services is facing yet another litigation. An investors’ group led by Aberdeen Asset Management has claimed damages from Satyam towards the losses it suffered following the accounting scam allegedly committed by Satyam’s founder B Ramalinga Raju and his associates. Aberdeen has raised a claim for an estimated loss in excess of $150 million; as well as an opportunity loss and interest of 8% due to the investments made in Satyam. Aberdeen has initiated action against Satyam by seeking the interference of the High Court of Justice, Queen’s Bench Division, Commercial Court in the UK.

In 2009, Raju had confessed to a multi-million dollar scam. While the CBI is still conducting the trial in the case, Raju and his associates are out on bail.

Tech Mahindra, the new promoter of the company, had earlier settled a patent-related dispute with the UK-based Upaid. It has also settled a class-action suit filed by a group of US investors by paying $125 million. The Aberdeen claim has continued to hang over Satyam and it was seen as one of the hurdles in the merger. Satyam maintains that the claim would be contested. In fact, the original claim was of $283 million.

Apart from Aberdeen, two other litigations remain unresolved.