Investor group Aberdeen drags Mahindra Satyam to UK court

Our Bureau Hyderabad | Updated on March 12, 2018

Claims $150-m damages for loss post 2009 fraud

Investor group Aberdeen Global and others have claimed damages ‘in excess of $150 million' from Mahindra Satyam for losses they allegedly suffered after the fraud hit the firm in 2009. They have filed a case in the High Court of Justice (Queen's Bench Division), Commercial Court, in the UK in this regard.

The complainants also wanted the court to consider the opportunity lost and an interest of 8 per cent. “They have sent a claim, as filed before the court, to our UK branch office,” Mahindra Satyam informed the Bombay Stock Exchange. Though the company argued that it was an old claim, this is for the first time that Aberdeen had quantified the loss it suffered “due to the investment made in the company's stock and/or American Depository Shares.”

“We will defend ourselves appropriately against any claims or proceedings that may be initiated,” Mr Vineet Nayyar, Chairman of Mahindra Satyam, said recently, referring to the Aberdeen claims.

The fresh case might cast its shadow on the process of Mahindra Satyam's merger with Tech Mahindra.

The company, in fact, faces two cases from Aberdeen — one each in the US and the UK. In the US, Aberdeen had amended its complaint in February. It claims damages of $68 million.

“In the UK, Aberdeen had only given the notice of potential proceedings against the company before a number of courts,” Mr Nayyar, had said while announcing the third quarter results.

“Aberdeen had initially put the loss at about $283 million. However, the list of claimant funds has undergone significant change and the losses allegedly sustained have not been specified. We have replied to the Aberdeen notice, defending our position,” he said.


Published on April 07, 2012

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