Shares of Satyam crashed Wednesday in Mumbai trading after its founder and chairman, B. Ramalinga Raju, said the company had inflated its cash and bank balances on the balance sheet by more than $1 billion over the past several years.
After the scandal broke, two law firms announced class-action lawsuits against Satyam.
The complaint charges that Satyam and some of its executives “violated federal securities laws by issuing materially false and misleading statements
Law firm Sarraf Gentile LLP said Thursday that it has filed a securities-fraud class-action lawsuit against Satyam on behalf of investors who purchased the company’s ADRs between January 2004 and January 2009. The lawsuit is pending in Manhattan federal court.
Separately, law firm Izard Nobel LLP said late Wednesday that a class-action lawsuit against Satyam has been filed in U.S. District Court for the Southern District of New York on behalf of investors who bought Satyam’s ADRs.
Meanwhile Satyam has started to reach out to assure its customers around the world regarding the fulfillment of all its business commitments.