Satyam Computer Services Ltd. - Securities Class Action

Company and Case Information

IMPORTANT INFORMATION | INDEX OF FILINGS | SEARCH

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright (c) 2001
Stanford Law School

Satyam Computer Services Ltd. Summary: Class action complaints have been filed in the U.S. District Courts for the Southern District of New York and the Northern District of California. The original complaint alleges that the Company and its two top executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading financial statements. On January 7, 2009, the Company's Chairman B. Ramalinga Raju sent a letter to the Satyam Board of Directors and the Securities & Exchange Board of India admitting a "multi-year" fraud in which Satyam's financial accounts and disclosures were systematically falsified. According to the letter, Raju admitted to having inflated the amount of cash on the Company's balance sheet by nearly $1 billion, incurring liability of $253 million on funds arranged by him personally, and overstating Satyam's September 2008 quarterly revenues by 76% and profits by 97%. As a result of this disclosure trading in the ADSs was halted, with an estimated indication of a loss being approximately 90% of its value.

On March 13, 2009, District Court Judge Barbara S. Jones granted the motion of the Satyam Investor Group for consolidation of related actions, appointment as lead plaintiff and approval of lead plaintiff's selection of co-lead counsel. The Consolidated Action shall have the following caption: In Re Satyam Computer Services Ltd. Securities Litigation, No. 09-cv-93-BSJ-DFE. The Satyam Investor Group is appointed Lead Plaintiff and the law firms Glancy Binkow & Goldberg LLP and Vianale & Vianale LLP are approved as Co-Lead Counsel for the Class.

On March 16, 2009, Judge Barbara S. Jones issued an Order vacating the Order initially issued on March 13, 2009, granting the motion for consolidation, appointment as lead counsel, and approval of lead plaintiff's selection of co-lead counsel.

On April 28, 2009, Judge Jones issues Pretrial Order No. 1, consolidating several actions into 09-md-02027 (BSJ), under In re Satyam Computer Services, Ltd., Securities Litigation. On May 12, 2009, the Court appointed the Global Institutional Investors Group as lead plaintiff and approved its selection of Grant and Eisenhofer P.A., Bernstein Litowitz Berger & Grossman LLP, Barrow Topaz Kessler & Check LLP, and Labaton Sucharow LLP as co-lead counsel.

On July 17, 2009, the lead plaintiff filed a Consolidated Class Action Complaint. In November and December 2009 and March and May 2010, the defendants filed numerous motions to dismiss. These motions are currently pending before the Court.

According to a news article dated February 18, 2011, in a settlement that has a number of interesting features, Satyam Computer Services, an Indian technology outsourcing company, has agreed to pay $125 million to settle the consolidated securities class action litigation pending against the company in Southern District of New York. The only settling defendant is the company itself, which is now known as Mahindra Satyam. The settlement does not resolve claims against the individual defendants, including certain of the company’s former directors and officers, or against PricewaterhouseCoopers-related entities. The settlement is subject to court approval, as well as other regulatory and governmental approval.

On February 17, 2011, the lead plaintiffs filed a First Amended Consolidated Class Action Complaint.

On March 21, 2011, Judge Barbara S. Jones signed the Amended Preliminary Approval Order. According to the Order, the Court has reviewed the Stipulation and preliminarily finds the Settlement set forth therein to be fair, reasonable and adequate, subject to further consideration at the Settlement Hearing described below. The Settlement Hearing pursuant to Rule 23(e) of the Federal Rules of Civil Procedure is hereby scheduled to be held before the Court on September 8, 2011 at 3:00 p.m. for the purposes as set forth herein.

On April 18, 2011, certain individual defendants filed two motions to dismiss the First Amended Consolidated Class Action Complaint. The defendants filed several more motions to dismiss on April 29 and May 3, 2011. On April 29, 2011, the plaintiffs entered into a settlement with defendant the PwC Entities. The proposed settlement is in the amount of $25.5 million in cash. The proposed settlement was preliminarily approved on May 12, 2011. The Settlement Hearing wss set for September 8, 2011.

On September 13, 2011, Judge Barbara S. Jones signed two Judgments settling the action as to Satyam and the PWC Entities. The Court also granted the two motions for attorney fees.

INDUSTRY CLASSIFICATION:
SIC Code: 7371
Sector: Services
Industry: Business Services

COMPANY/ISSUER NAME:	Satyam Computer Services Ltd.
COMPANY/ISSUER TICKER:	SAY
COMPANY WEBSITE:	http://www.satyam.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Aekta Ben Patel, et al. v. Satyam Computer Services Ltd., et al.

COURT: S.D. New York	DOCKET NUMBER: 09-CV-00093
JUDGE NAME: Hon. Barbara S. Jones
DATE FILED: 01/07/2009	SOURCE:
CLASS PERIOD START: 01/06/2004	CLASS PERIOD END: 01/06/2009
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Sarraf Gentile LLP (Former New York) 11 Hanover Square, 2nd Floor, New York, NY, 10005 (voice) 212.868.3610, (fax) 212.868.3610, information@sarrafgentile.com Vianale & Vianale LLP (Boca Raton) 2499 Glades Road, Suite 112, Boca Raton, FL, 33431 (voice) 561.392.4750, (fax) 561.392.4750, info@vianalelaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint
Type: Complaint		Date on the document: 01/07/2009
[Proposed] Order Granting Motion Of The Satyam Investor Group For Consolidation Of Related Actions, Appointment As Lead Plaintiff And Approval Of Lead Plaintiff's Selection Of Co-Lead Counsel
Type: Order of Consolidation		Date on the document: 03/13/2009
Order
Type: Order		Date on the document: 03/16/2009
Pretrial Order No.1
Type: Order		Date on the document: 04/28/2009
[Order]
Type: Order Appointing LP/LC		Date on the document: 05/12/2009
Amended Order
Type: Order Appointing LP/LC		Date on the document: 05/19/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 03/23/2010

REFERENCE COMPLAINT

In Re: Satyam Computer Services, Ltd., Securities Litigation

COURT: S.D. New York	DOCKET NUMBER: 09-MD-02027
JUDGE NAME:
DATE FILED: 02/17/2011	SOURCE:
CLASS PERIOD START: 01/06/2004	CLASS PERIOD END: 01/06/2009
TYPE OF COMPLAINT: First Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Barroway Topaz Kessler Meltzer & Check, LLP (Radnor) 280 King of Prussia Road, Radnor, PA, 19087 (voice) 610.667.7706, (fax) 610.667.7706, info@btkmc.com Bernstein Litowitz Berger & Grossmann LLP (New York, NY) 1285 Avenue of the Americas, 33rd Floor, New York, NY, 10019 (voice) 212.554.1400, (fax) 212.554.1444, blbg@blbglaw.com Grant & Eisenhofer (New York) 485 Lexington Avenue, 29th Floor, New York, NY, (voice) 646.722.8500, (fax) 646.722.8500, lawyers@gelaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE REFERENCE COMPLAINT
Transfer Order
Type: Other		Date on the document: 04/09/2009
Consolidated Class Action Complaint
Type: Complaint		Date on the document: 07/17/2009
Transfer Order
Type: Court Transfer Order		Date on the document: 04/01/2010
Stipulation And Agreement Of Settlement With Defendant Satyam computer Services Ltd.
Type: Settlement		Date on the document: 02/16/2011
First Amended Consolidated Class Action Complaint
Type: Complaint		Date on the document: 02/17/2011
Amended Preliminary Approval Order Providing For Notice And Hearing In Connection With Proposed Class Action Settlement With Satyam Computer Services Ltd.
Type: Order		Date on the document: 03/21/2011
Notice Of Filing Of Revised Exhibits To The Satyam Settlement Preliminary Approval Order
Type: Notice		Date on the document: 04/29/2011
Notice Of Filing Of Stipulation And Agreement Of Settlement Between Lead Plaintiffs And The Pwc Entities
Type: Notice		Date on the document: 04/29/2011
Preliminary Approval Order Providing For Notice And Hearing in Connection With Proposed Class Action Settlement With The Pwc Entities
Type: Order		Date on the document: 05/12/2011
Final Order and Judgment as to Satyam
Type: Order		Date on the document: 09/13/2011
Final Order And Judgment As To The PWC Entities
Type: Order		Date on the document: 09/13/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 09/15/2011

OTHER DOCUMENTS
Class Action Complaint
Case Name and/or Number: Hossein Momenzadeh, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/08/2009
Class Action Complaint
Case Name and/or Number: Cynthia Freeman, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/09/2009
Complaint For Violation Of Federal Securities Law
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/09/2009
Class Action Complaint
Case Name and/or Number: Naveen Chander Jepu, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/13/2009
Class Action Complaint
Case Name and/or Number: Beth H. Sturgis, II, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/13/2009
Class Action Complaint
Case Name and/or Number: Larry R. Pennington, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/14/2009
Class Action Complaint
Case Name and/or Number: James Hamblin, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/16/2009
Class Action Complaint For Violations Of Federal Securities Laws
Case Name and/or Number: Brian Faber, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/20/2009
Class Action Complaint For Violations Of Federal Securities Laws
Case Name and/or Number: Hillel Raymon, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/20/2009
Complaint For Violation Of The Federal Securities Law
Case Name and/or Number: Taylor Jamrok, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 01/22/2009
Class Action Complaint
Case Name and/or Number: William M. Herbert, et al. v. Satyam Computer Services Ltd., et al.
Type: Complaint		Date on the document: 02/06/2009
Certificate Of Counsel Alan I. Ellman Pursuant To CIV. L.R. 3-7(D)
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Other		Date on the document: 03/09/2009
Certificate Of Counsel Christopher J. Keller Pursuant To CIV. L.R. 3-7(D)
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Other		Date on the document: 03/09/2009
Certificate Of Counsel Joseph J. Tabacco, Jr. Pursuant To CIV. L.R. 3-7(D)
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Other		Date on the document: 03/09/2009
Certificate Of Counsel Lesley Ann Hale Pursuant To CIV. L.R. 3-7(D)
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Other		Date on the document: 03/09/2009
Certificate Of Counsel Nicole Lavallee Pursuant To CIV. L.R. 3-7(D)
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Other		Date on the document: 03/09/2009
Certificate Of Counsel Stefanie J. Sundel Pursuant To CIV. L.R. 3-7(D)
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Other		Date on the document: 03/09/2009
Declaration Of Alan I. Ellman In Support Of Mineworkers' Pension Scheme For Appointment As Lead Plaintiff And Approval Of Proposed Lead Plaintiff's Selection Of Lead Counsel
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Declaration		Date on the document: 03/09/2009
Motion And Memorandum Of Points And Authorities In Support Of Mineworkers' Pension Scheme For Appointment As Lead Plaintiff And Approval Of Proposed Lead Plaintiff's Selection Of Lead Counsel
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Motion		Date on the document: 03/09/2009
Proof Of Service
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Other		Date on the document: 03/09/2009
[Proposed] Order For Appointment As Lead Plaintiff And Approval Of Proposed Lead Plaintiff’s Selection Of Lead Counsel
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Other		Date on the document: 03/09/2009
Notice Of Filing Mineworkers’ Pension Scheme’ Memorandum Of Law In Further Support Of Its Motion For Consolidation Appointment As Lead Plaintiff, And Approval Of Selection Of Lead Counsel, And In Opposition To The Competing Motions
Case Name and/or Number: Saji Vettiyil, et al. v. Satyam Computer Services Ltd., et al.
Type: Notice		Date on the document: 04/01/2009

WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.

Go to Search page | Go to Case Index page | Back to Top

�