Mahindra Satyam on Thursday said it has entered into an agreement to settle claims for alleged fraudulent misrepresentations and will pay $68 million to Scottish investment house Aberdeen Global and 22 other funds to settle their claim for damages.
The funds had claimed damages in connection with the losses that Aberdeen had allegedly suffered on account of the 2009 accounting scandal perpetrated by erstwhile Satyam promoter Ramalinga Raju.
“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 its subsidiaries,” the company said in a BSE disclosure. 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 said that they have suffered losses of an estimated sum of $298 million and additional consequential losses. By virtue of the settlement, the claims have been fully and finally disposed of,” the company said in the filing. A class action brought in the US on behalf of other former investors in the company was also settled in February, 2011, it added.
Satyam was sold to Tech mahindra in a government-backed auction in 2009. Mahindra Satyam, which is in the process of merging with parent Tech Mahindra, had also settled claims by Aberdeen-affiliated former investors in the United States in July, and a class-action suit in February 2011.
In December 2009, Satyam had entered into a settlement with the UK-based mobile payment solutions provider Upaid Systems for $70 million.