Defendant Name:
Satyam Computer Services Limited
Defendant Type:
Public Company
SIC Code:
7371
CUSIP:
80409810
Document Reference:
comp21915
Document Details
Legal Case Name
SEC v. Satyam Computer Services Limited d/b/a Mahindra Satyam
Document Name
Complaint
Document Date
05-Apr-2011
Document Format
Civil Proceeding
Case Number
11-cv-00672
Federal District Court
District of Columbia, District of Columbia
Federal District Judge
Ellen S. Huvelle
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On April 5, 2011, the SEC filed a complaint against Satyam Computer Services Limited. According to the SEC "[f]rom at least 2003 through September 2008, defendant Satyam Computer Services Limited deceived investors by falsifying the company's revenue, income, earnings per share, and interest bearing deposits-the primary indicators upon which investors rely when making decisions about whether to purchase or sell company securities. Satyam acknowledges that it falsely reported, among other items, over $1 billion in revenue in its publicly filed financial statements." The SEC alleged that these "fraudulent accounting practices violated the anti-fraud, reporting, record-keeping, and internal controls provisions of the federal securities laws."
Related Documents:
SEC Charges Satyam Computer Services With Financial Fraud
On April 5, 2011, the SEC issued a litigation release announcing that it filed a settled civil action against Satyam Computer Services Limited charging it "with fraudulently overstating the company's revenue, income and cash balances by more than $1 billion over five years." According to the SEC, the company "has agreed to pay a $10 million penalty to settle the SEC's charges, require specific training of officers and employees concerning securities laws and accounting principles, and improve its internal audit functions. In addition, it agreed to hire an independent consultant to evaluate the internal controls Satyam is putting in place." In addition, "Without admitting or denying the allegations in the SEC's complaint, Satyam agreed to a permanent injunction against future violations of the periodic reporting provisions of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20 13a-1 and 13a-16. The settlement also requires Satyam to hire an independent consultant and comply with certain undertakings."
2011-81
05-Apr-2011
Press Release--Civil Action
SEC Charges Satyam Computer Services With Financial Fraud
On April 5, 2011, the SEC announced that it charged India-based Satyam Computer Services Limited ("Satyam") with fraudulently overstating the company's revenue, income and cash balances by more than $1 billion over five years. According to the SEC's complaint filed in U.S. District Court in Washington, D.C., shortly after the fraud came to light in January 2009, the India government seized control of the company by dissolving Satyam's board of directors and appointing new government-nominated directors, removed former top managers of the company, and oversaw a bidding process to select a new controlling shareholder. In addition, India authorities filed criminal charges against several former officials. In addition to the actions taken by the India authorities, Satyam, whose new leadership cooperated with the SEC's investigation, has agreed to settle the SEC's charges. Without admitting or denying the SEC's allegations, the company agreed to a permanent injunction against future violations of the federal securities laws, pay a $10 million penalty, require specific training of officers and employees concerning securities laws and accounting principles, improve its internal audit functions, and hire an independent consultant to evaluate the internal controls the company is putting in place. In bringing this settled enforcement action, the SEC balanced the scope and severity of Satyam's misconduct and harm to holders of Satyam's American Depository Shares against the unique and significant remediation efforts made after the fraud became public in 2009.
Final Judgment Against Defendant Satyam Computer Services Limited
On February 6, 2011, Federal District Judge Ellen S. Huvelle entered final judgment against Satyam Computer Services Limited pursuant to the consent of Satyam Computer Services Limited.
