Satyam gets US court nod for class-action settlement

IT company Mahindra Satyam today said a US court has approved the company's $125 million class action settlement with a group of shareholders.

"The class action settlement agreement that was entered into between the company and lead plaintiffs representing the class on February 16, 2011, has been granted final approval by the US District Court for the Southern District of New York through a judgment, which is subject to an appeal period of 30 days from the date of its entry," Satyam said in a filing to the Bombay Stock Exchange (BSE).

The settlement shall become effective pursuant to its terms and the terms of the judgment, it added.

In exchange for the settlement consideration, the Lead Plaintiffs and the members of the Class who do not opt-out of the Class, would release, among other things, their claims against the company, the filing said.

In February, Satyam had agreed to settle with some investors who had filed lawsuits claiming damages after former chairman B Ramalinga Raju confessed to overstating profits and declaring a fictitious cash balance.

Since then, Tech Mahindra has acquired Satyam Computer Services and rebranded the firm as Mahindra Satyam.