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12 class action suits in the US

BS Reporter  |  Mumbai 

At least 12 class action lawsuits have been filed in the US Federal Courts on behalf of shareholders who purchased American Depository Receipts (ADRs) of Satyam Computer Services between January 6, 2004 and January 6, 2009.

According to reports from the US, the lawsuits have alleged violations of the US securities laws, including issuance of a series of material misrepresentations to the market that artificially inflated share prices.

A class action, or a representative action, is a form of lawsuit where a group of people collectively filing a case in the court.

The US-based securities and anti-trust firm Pomerantz Haudek Block Grossman & Gross is the latest to file class action suit.

“The Pomerantz firm has commenced an investigation into the scandal on behalf of investor clients, and is exploring the possible claims that can be raised, including claims under the federal securities laws, and focusing on identification of possible defendants in addition to the Ragu (Raju) brothers such as outside auditors, and on the location of assets in this country,” according to a statement posted on its website.

Izard Nobel, Harwood Feffer, Finkelstein Thompson, Dyer & Berens, Brodsky & Smith, Brualdi Law Firm, Federman & Sherwood Satyam, Federman & Sherwood and Glancy Binkow & Goldberg have filed class action suits in the US District Court for the Southern District of New York.

Two other law firms, Sarraf Gentile and Vianale & Vianale, have filed suits in the Manhattan federal court since Wednesday. An individual — Aekta Ben Patel — has filed a class action complaint in the district court of New York. She is being represented by law firm Vianale & Vianale. Two more individuals, whose names could not be ascertained, have also filed class action suits through their lawyers in the New York courts, a website reported.

The suits have named Satyam, B Ramalinga Raju and his brother and director B Rama Raju as defendants.

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First Published: Sun, January 11 2009. 00:00 IST