3 lakh shareholders file Rs4987cr suit against Satyam in SC

100663 Investors following Mahindra Satyam. Share this News with them.

0

Like this story, share it with millions of investors on M3

3 lakh shareholders file Rs4987cr suit against Satyam in SC

In what could possibly be the first ever domestic class action lawsuit, the Supreme Court (SC) will on Monday hear a case against Satyam Computer Services, its ex- promoters, its audit firm, and even the former independent directors. CNBC-TV18’s Ashwin Mohan reports.

Post your opinion here

 

0

Tweet

Share on Tumblr

In what could possibly be the first ever domestic class action lawsuit, the Supreme Court (SC) will on Monday hear a case against Satyam Computer Services , its ex- promoters, its audit firm, and even the former independent directors. CNBC-TV18's Ashwin Mohan reports.

Though there are no specific provisions as such, sources indicate that this case could amount to a possible class action lawsuit of sorts and it will come up on Monday at the Supreme Court.

Now, here is the party which is behind this proceeding. Its name is Midas Touch Investment Association. Midas Touch is a Kanpur-based organization and has been registered by the Securities and Exchange Board of India (SEBI).

The similar suit which was filed by Midas was dismissed earlier by the apex consumer forum that is the National Consumer Disputes Redressal Commission Forum (NCDRC). So, that is the background of this case.

This suit has been filed primarily against the Raju brothers, the audit firm PricewaterhouseCoopers, and all ex-independent directors. I did get in touch with Midas Touch and they clarified that they are not pressing for any liability against the company i.e. Satyam Computer Services or Mahindra Satyam as it is known today.

Of course the damages are a whopping amount, Rs 4,987 crore that is what this class action lawsuit is seeking. Midas Touch is representing a total of three lakh Satyam shareholders who are affected due to alleged misleading financial statements before the January 9 disclosure by Ramalinga Raju.

This suit of sorts is also seeking a production of all the financial details related to the fraud. There are two main allegations also, the first allegation is that the investors were duped via unfair trade practices and the second allegation is that the investors were duped via deficient services. Of course, we will all have to wait to see on Monday on what view the Supreme Court takes on this case.