Mahindra Satyam has said that it has entered into a settlement with Aberdeen Claims Administration Inc. for about $12 million (approximately Rs 66.7 crore) over claims that the investors it represented had sustained losses in their purchase of former Satyam Computer stock.

The settlement is subject to an appropriate consent order by the concerned US court, the company said in its filing with the stock exchanges.

Mahindra Satyam said that it had entered into an Agreement of Settlement with Aberdeen Claims Administration Inc., the trustee for two trusts which were the purported assignees of legal claims against the company.

These persons had allegedly purchased the company’s common stock and American Depositary Shares prior to January 7, 2009, and who sold such securities shortly thereafter. Aberdeen had alleged that the losses suffered by the 20 investors were over $68 million.

The company said that the obligations incurred following the settlement were in “full and final disposition of the action’’ initiated by Aberdeen in the United States District Court for the Eastern District of Pennsylvania, subsequently transferred and currently pending in the United States District Court for the Southern District of New York.

As per the settlement, the company is required to inter alia deposit in an escrow $12 million (equivalent to Rs 66.7 crore. The settlement itself was subject to the entry of an appropriate consent order by the court that has not been delivered till date, the statement said.

(This article was published on July 28, 2012)
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