LOS ANGELES, Jan. 8, 2009 (GLOBE NEWSWIRE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of a class consisting of all purchasers of American Depositary Shares ("ADSs") of Satyam Computer Services Limited ("Satyam" or the "Company") (NYSE:SAY), between January 6, 2004 and January 6, 2009, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at http://www.glancylaw.com.
The Complaint charges Satyam and certain of its executive officers and directors with violations of federal securities laws. Satyam provides information technology services and business process outsourcing services in North America, Europe, the Asia Pacific, Middle-East, Australia, Africa and South America. Plaintiff claims that defendants artificially inflated the price of Satyam ADSs by issuing material misrepresentations to the market concerning the Company's financial performance.
The Complaint alleges that throughout the Class Period defendants issued financial information about the Company, including information contained in certain of its Annual Reports to the U.S. Securities and Exchange Commission on Form 20-F, which was false and misleading because, among other things, the Company's financial information was systematically falsified, its cash amounts "inflated" by material amounts, and its assets purely "fictitious."
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 acknowledging a multi-year fraud in which Satyam's financial accounts and disclosures were systematically falsified, its profits were overstated for the past several years, the debt owed to the Company was overstated and its liability understated. Further, B. Ramalinga Raju admitted to having inflated the amount of cash on the Company's balance sheet by nearly $1 billion and overstating Satyam's September 2008 quarterly revenues by 76% and profits by 97 percent, and that 50.4 billion rupees, or $1.04 billion, of the 53.6 billion rupees in cash and bank loans the Company listed in assets for its second quarter, which ended in September 2008, were nonexistent. The Chairman's letter described the scheme as a small discrepancy that grew beyond his control: "What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of company operations grew," he wrote. "It was like riding a tiger, not knowing how to get off without being eaten."
On January 7, 2009, the Company announced that Ram Myanpati, President and whole-time director of Satyam, is acting as interim CEO pending ratification by the Board. Also on January 7, DSP Merrill Lynch Limited, which had been previously retained by Satyam to assist a review of the Company's strategic options, terminated its engagement with Satyam, prompted by the disclosure of "material accounting irregularities."
Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move the Court, no later than March 9, 2009, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, or Richard A. Maniskas, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.