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Satyam Computer Chairman reportedly admits to multi-year accounting fraud, resulting in a dramatic loss of shareholder value.
Investigation Source (Case #09-cv-00093)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- False And Misleading Statements
- Insider Selling/Undisclosed Related Party Transactions
- Foreign Corporation
- Lead Plaintiff Not Chosen
Products or Services
- Investments
- Common Stock
Injury Type
- Monetary Loss
Investigation Details
On January 7, 2009, Satyam Computer Services' Chairman B. Ramalinga Raju sent a letter to the Satyam Board of Directors and the Securities & Exchange Board of India admitting a "multi-year" fraud in which Satyam's financial accounts and disclosures were systematically falsified. Raju admitted to having inflated the amount of cash on Satyam's balance sheet by nearly $1 billion, incurring liability of $253 million on funds arranged by him personally, and overstating Satyam's September 2008 quarterly revenues by 76% and profits by 97%.
As a result of this disclosure trading in the ADSs was halted, with an estimated indication of a loss being approximately 90% of its value.
Investors in Satam's stock were simply crushed by this fraud. This class action seeks to recoup for investors whatever portion of their losses the law permits.
As a result of this disclosure trading in the ADSs was halted, with an estimated indication of a loss being approximately 90% of its value.
Investors in Satam's stock were simply crushed by this fraud. This class action seeks to recoup for investors whatever portion of their losses the law permits.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Satyam Computer Services Ltd. (SAY) | Satyam Computer Services Limited provides information technology services and business process outsourcing (BPO) services in North America, Europe, the Asia Pacific, the Middle-East, Australia, Africa, and South America. |