Source: Business Wire
Thursday, February 05, 2009 10:15 AM IST (04:45 AM GMT)
Editors: General: Consumer interest, Economy, Law & justice; Business: Banking & financial services, Business services, Financial Analyst; Technology
Release no: 19152
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(BW)(NY-POMERANTZ-HAUDEK)(SAY)Pomerantz Law Firm Reports on Developments Relevant to the Securities Fraud Case against Satyam Computer Services (SAY), its Former Officials and Auditors
New York, United States, Thursday, February 05, 2009 -- (Business Wire India) --
Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action complaint in the United States District Court, Southern District of New York against Satyam Computer Services ("Satyam" or the "Company"), its former Chairman B. Ramalinga Raju; his brother, B. Rama Raju; and Satyam's outside auditors PricewaterhouseCoopers Pvt. Ltd., Price Waterhouse ("PwC") and Pricewaterhouse Coopers International Limited.
The class action (Case No. 09-CV-489) was filed on behalf of purchasers of the American Depository Receipts ("ADRs") of Satyam between January 6, 2004 through January 6, 2009, inclusive (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (15 U.S.C. Sections 78j(b) and 78t(a)).
In addition to allegations of fraud against Satyam and the officer defendants, the complaint alleges that PwC was aware of, or recklessly disregarded, a multi-year massive fraud by Satyam management to overstate the Company's earnings and concocting $1 billion of cash that didn't exist. The case further alleges that PwC ignored red flags that should have alerted it to the fraud, and moreover, failed to perform its audits in accordance with the requisite accounting principles. Two partners of PwC have been arrested in India in connection with their audits of Satyam. Disclosure of the stunning fraud at Satyam materially impacted the price of the Company's ADRs. Indeed, trading in the Company's ADRs was briefly halted after the fraud was revealed, and the ADRs are now currently trading just below $2, a precipitous drop from the Company's 52-week high of $29.84.
If you purchased or acquired the ADRs of Satyam during the Class Period, you have until March 9, 2009 to ask the Court to appoint you as lead plaintiff for the class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may join the action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Shaheen Rushd (srushd@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered hundreds of millions of dollars on behalf of class members.
CONTACT DETAILS
CONTACTS :
Pomerantz Haudek Block Grossman & Gross LLP
Teresa L. Webb, (888) 476.6529 (888) 4.POMLAW
tlwebb@pomlaw.com
KEYWORDS
CONSUMER, ECONOMY, LAW, BANKING, BUSINESS SERVICES, Financial Analyst, TECHNOLOGY
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