01-14-2009, 03:36 AM
<b>Lawsuits against Satyam in US new headache for govt</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The government now faces the tough challenge of tackling nearly a dozen lawsuits filed in the US seeking compensation for the multi-crore financial fraud committed by the Satyam Computers.
The Law Minister H.R. Bhardwaj and Company Affairs Minister P.C. Gupta along with senior officials of both the ministries went into a huddle on Tuesday seeking a way out of the situation. <b>The compensation sought by the American investors is likely to run into hundreds of millions of dollars.</b>
Top legal officers of the government say that Satyam stood a little chance of escaping huge penalties as the law against fraud is strict in the US<b>. âSatyam would have to hire top US legal firms if it wants to have any chance of defending itself there,â a senior government official said.</b>
<b>The likely compensation for US investors threatens to derail all efforts been made by the government to keep the company afloat, the official said</b>.
Shareholders of any company listed in the US stock exchanges can file a case of wrongdoing against the company in any American court. Satyam Computers is listed at the New York Stock Exchange.
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The Law Minister H.R. Bhardwaj and Company Affairs Minister P.C. Gupta along with senior officials of both the ministries went into a huddle on Tuesday seeking a way out of the situation. <b>The compensation sought by the American investors is likely to run into hundreds of millions of dollars.</b>
Top legal officers of the government say that Satyam stood a little chance of escaping huge penalties as the law against fraud is strict in the US<b>. âSatyam would have to hire top US legal firms if it wants to have any chance of defending itself there,â a senior government official said.</b>
<b>The likely compensation for US investors threatens to derail all efforts been made by the government to keep the company afloat, the official said</b>.
Shareholders of any company listed in the US stock exchanges can file a case of wrongdoing against the company in any American court. Satyam Computers is listed at the New York Stock Exchange.
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