Pension fund cannot join lawsuit
Satyam is trying to limit its liability by saying a pension fund cannot join US litigation sparked by the scandal.
Satyam said the Mississippi Public Employees’ Retirement System (PERS), which claimed it lost $12.7 million, was not qualified to join in a dozen US securities-fraud lawsuits filed by other investors, because it bought Satyam’s common shares rather than its American depositary receipts (ADRs) , the focus of the litigation.
“Mississippi PERS does not belong to any purported class in this action,” the Hyderabad-based company said in a March 26 court filing.
The company is putting itself up for sale as it faces the proposed class-action, or group, lawsuits filed on behalf of ADR buyers. ADRs, are issued by US banks to allow investment in non-US companies.