Satyam Computer Services appears to have cleared the overhang of overseas claims related to its tainted founder B Ramalinga Raju with a $68 million settlement with Aberdeen Global and 22 other funds managed by Aberdeen Asset Management.
“The claims included certain allegations of fraudulent misrepresentations said to have been made by the former management of the company (led by Raju) in London and relied upon by the claimants’ investment manager and/or communicated in meetings alleged to have taken place in London. 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 by the company of $68 million,” Satyam said in a statement.
In July, Satyam settled claims by other Aberdeen-affiliated former investors brought in the US. A class action brought in the US on behalf of other former investors in the company was also settled in February 2011.
So far, the company has spent around $285 million on settling various claims raised by investors since the scam was unearthed, including the Aberdeen entities in the US and the UK ($80 million), class action suits by the US investors ($125 million), US SEC ($10 million) and a forgery and fraud case by Upaid ($70 million).
However, the company continues to face the claims of a group of about 37 entities that had allegedly lent about Rs1,230 crore to Satyam during Raju’s regime.