Mahindra Satyam reaches settlement with SEC
Mahindra Satyam has announced that it had reached settlement with the United States Securities and Exchange Commission (SEC), without admitting or denying allegations of any wrongdoing, which concludes the SEC's investigation of accounting issues as to the Company. This settlement relates to an accounting fraud perpetrated by the Company's former management from at least 2003 through September 2008. All of the misconduct transpired under previous management prior to the nomination and appointment by the Government of India of new directors for the Company on January 11, 2009, and prior to the strategic investment by Venturbay Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited, that was completed in July 2009.
Vineet Nayyar, Chairman, Mahindra Satyam, said, "We concluded that it is in the best interest of Mahindra Satyam and its shareholders to resolve this matter and put it behind us on the basis announced. The new management of the Company is committed to the highest standards and we will never betray the trust of our investors."
Under the terms of the settlement, the Company consented to the entry of a judgment requiring it to pay a civil penalty of $10 million, comply with the US federal securities laws, hire an independent consultant, and comply with certain undertakings.
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