NEW YORK, Jan. 20, 2009 (GLOBE NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action lawsuit in the United States District Court, Southern District of New York, which names as a defendant Satyam's outside auditor, PricewaterhouseCoopers Pvt. Ltd., Price Waterhouse (collectively, "PwC") and Pricewaterhouse Coopers International Limited. Also named as defendants are Satyam Computer Services Ltd. ("Satyam"); its former Chairman, B. Ramalinga Raju; his brother, B. Rama Raju, the Company's former Managing Director and CEO; and the former Chief Financial Officer, Srinivas Vadlamani.
The class action, (Case No. 09-CV-489) was filed on behalf of purchasers of the American Depository Receipts ("ADRs") of Satyam from 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)) and Rule 10b-5 promulgated thereunder.
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, including concocting $1 billion of cash that didn't exist, and overstating revenues and profits. 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. PwC is currently under investigation by India's Institute of Chartered Accountants for its role in auditing Satyam's books. Disclosure of Satyam's stunning fraud 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 between $1 and $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.