Market regulator Securities and Exchange Board of India (Sebi) will fund a domestic investors' association that has filed a class action
suit against Satyam Computers, its former promoters, auditors and directors.
The lawsuit is seeking compensation from Satyam and the parties involved for the losses these investors incurred in its stock price crash, after an accounting fraud came into light in January 2009.
The class action, which is a collective lawsuit presented by a representative-member before a court on behalf of a large number of investors, has been filed by New Delhi-based Midas Touch Investor Association in the Supreme Court.
This is among the many several class action suits that the company is facing, mostly in the US. Midas, which represents three lakh investors, collectively holds nine crore shares of Satyam, now renamed Mahindra Satyam.
"We have sought compensation on behalf of retail investors who were defrauded due to fudged accounts, which helped the ex-promoters manipulate prices," said Virendra Jain of Midas Touch Investor Association. The former auditor, Price Waterhouse and the company's directors have been blamed for being party to this fraud.
