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More trouble brewing for Satyam
January 02, 2009 09:16 IST
More trouble may be brewing for the beleaguered Satyam [Get Quote] Computers with a Texas district court scheduled to hear on January 7, a case filed against the IT major by a small British mobile solution firm, Upaid, over the Maytas deal.
On January 10, Satyam is holding a board meeting to discuss the options of restoring shareholders confidence after the failed Maytas deal and any further legal development before that could spell more problems for the management.
Upaid, which is already fighting a forgery case against Satyam in a US court, had filed a motion against Satyam Computer Services with the state court, saying that they are looking for a testimony from Ramalinga Raju, CFO Srinvas Vadlamani, and the company's head of corporate governance Jayraman after the abortive Maytas deal.
A Satyam spokesperson said the company is expected to submit its response this week-end.
The court can thus say that there can be a testimony after which the Satyam officials will go for a testimony or instead the court can rules in favour of Satyam.
The Satyam spokesperson said they would wait for the court's direction on the issue. But on January 7, no senior official would attend the case.
This motion is pertaining to the second case, which was initiated by Satyam - the disparagement case. Upaid is seeking a testimony, wherein they can ask Satyam about the entire Maytas episode and also they could call for details and documents.
Upaid's move is seen as a way where they could also overlap with the first case, Upaid versus Satyam, pertaining to forgery and fraud filed some time ago.
The testimony would also include documents to be produced, thorough questioning by legal counsel on the thought process behind the Maytas deal.
As regard to the old case, Upaid has also been asking for a testimony for the first case relating to forgery and fraud with Rama Raju, MD of Satyam and also the younger brother of Ramalinga Raju, Srinivas Vadlamani, Krishna G Palepu, a Howard Business School professor. The case is still pending in a federal court.
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