SEC settlement in 'best interests of shareholders': Satyam

Mahindra Satyam reached a settlement with the Securities and Exchange Commission (SEC) of the United States in the best interests of the company and shareholders, the company said today.

Vineet Nayyar, Chairman, Mahindra Satyam, said, "We concluded that it is in the best interests of Mahindra Satyam and its shareholders to resolve this matter and put it behind us on the basis announced today. The new management of the Company are committed to the highest standards and we will never betray the trust of our investors."

The US regulators yesterday fined the software firm and its auditors PriceWaterhouse India up to USD 17.5 million for the accounts manipulation that went undetected for several years.

The SEC said Satyam Computer Services had agreed to pay a fine of USD 10 million toward settlement of charges of fraudulently "overstating the company''s revenue, income and cash balances by more than USD 1 billion over five years".

Mahindra Satyam reached the settlement "without admitting or denying allegations of any wrongdoing", the company said.

Mahindra Satyam recently agreed to pay USD 125 million to settle a putative class action suit filed against it in USA.

The company also paid USD 70 million to the UK-based company, Upaid Systems Ltd in 2009 for settling another suit, filed in 2005, accusing Satyam Computer of fraud and forgery.

After the SEC settlement news broke, Satyam scrip shot up on Bombay Stock Exchange and is traded at Rs 76.15 today.