Former Satyam directors ‘victims of fraud’: US court

US court here has dismissed claims made in a class action lawsuit against seven former directors of Indian IT firm Satyam Computers saying the directors were themselves "victims of the fraud" and the shareholder suit fails to adequately prove allegations of fraud and negligence against them.

US District Judge Barbara Jones of the Southern District of New York said in a 71-page ruling yesterday that the motion filed by the directors seeking dismissal of claims against them is "granted".

Jones ruled that in order to establish motive and opportunity, the plaintiffs must allege that the Satyam directors named in the lawsuit "benefitted in some concrete and personal way from the purported fraud". However, the class action complaint "contains no facts" suggesting that the directors benefitted personally from the Satyam fraud.

The suit was brought by firms in the US who had brought Satyam stock on the NSE and the BSE between January 2004 and January 2009. These firms include Public Employees' Retirement System of Mississippi, Mineworkers' Pension Scheme, SKAGEN AS and Sampension KP Livsforsikring A/S.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on indianexpress.com are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress.com reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.