Does India have legal structure to support Satyam class action suit ?
SOURCE: Financial Times
DATE: March 8th, 2010
The article in Financial times talks about the challenges of suing an Indian firm by overseas stockholders and claiming damages. The suit is against Satyam whose chairman confessed to a fraud in the company to the tune of US $ 1 billion and is being bought by shareholders who hold ADR ( American Depositary Shares) in Satyam. Satyam case will test rights of foreign investors in Indian companies
Satyam which is now part of Tech Mahindra continues to have their fair share of legal issues and are keeping a number of cross border legal firms pretty busy.
Two firms – US based Bridge Strategy Group and Ghent, Belgium-based supply chain solutions firm S&V Management Consultants which were acquired by Satyam have come to legal closure on their issues with Satyam.
Satyam had also purchased back in April 2008 the market research and customer analytics business unit of Caterpillar the construction giant and was planning to leverage that to launch there Knowledge Process Outsourcing Services. That disputes looks like is still ongoing and not resolved.
Two Satyam disputes settled amicably
Satyam and Upaid also continue to spar over their tax and legal issues.
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