Satyam to pay $125 mn to settle US fraud case

NEW YORK, USA: Software servicing company Satyam Computer Services Ltd, now renamed Mahindra Satyam, has agreed to pay $125 million to settle U.S. shareholder litigation arising from a 2009 accounting fraud that turned into India's biggest corporate scandal.

The settlement does not cover various individuals including Ramalinga Raju, the company's founder and former chairman, according to settlement papers filed late Wednesday in the U.S. district court in Manhattan.

Raju shocked investors in January 2009 when he said Satyam had overstated earnings and assets for years, in a fraud estimated to exceed $1.5 billion.

The settlement would resolve claims that Satyam misled investors about its business performance, court records show. A hearing to consider preliminary approval of the accord is set for February 24, the records show.