Satyam has conceded coughing up to settle a US lawsuit.
It will pay New York based businesses a one off fee of $125 million (approximately Rs 556 crore), which is also inclusive of taxes.
Speaking to the Indian press, chairman Vineet Nayyar said that the amount will be delivered to the four lead plaintiffs once the US court judge gives final approval to the settlement deal.
However, the companies in question – Public Employees’ Retirement System of Mississippi, Britain’s Mineworkers’ Pension Scheme, Norway’s Skagen AS, and Denmark’s Sampension KP Livsforsikring A/S – might have to wait up to four months to get their hands on the dosh, which needs to also be approved by RBI and come from Satyam’s cash coffers.
It looks like some of the money will have to be recovered from legal bigwigs Price Waterhouse Cooper, which allegedly gave a helping hand to former disgraced founder B Ramalinga Raju with the problem at hand.
Raju is the main suspect in the multi-crore Satyam Computers accounting scam, which was uncovered last year. At the time Raju resigned as its chairman and admitted to major financial wrong-doings while talking about a last minute effort to fill ficticious assets with real ones regarding the failed Maytas acquisition.
However, last year he wasn’t appearing in court, spouting tales of ill health.
After Raju confessed to having fiddled with company accounts, Satyam’s stock on the New York Stock Exchange took a beating. It also caused big losses and kicked started legal dramatics.
The four here are what the company claims to be the last, but Satyam’s money pit has been endless. In December 2009, for example, it settled a lawsuit filed by former client UPaid over licence of intellectual property. The claims cost Satyam a huge $70 million.
*EyeSee “Satyam” is Sanskrit for truth. “Tata” means “goodbye forever”.