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.