Mahindra Satyam settles Upaid case; but more pending
14 Dec 2009
Mahindra Satyam has finally settled its long-drawn-out legal case with UK's online and mobile payments firm Upaid for $70 million. Mahindra Satyam would pay Upaid $45 million upfront and the remaining $25 million in the next one year.
The deal requires Upaid to grant Mahindra Satyam a worldwide royalty-free licence on its patent. With this settlement, all pending actions between the two companies stand dismissed, CNBC-TV18 reported.
Sources say that Upaid investors are concerned over the settlement amount. Upaid has written to its investors detailing the Satyam settlement. Sources also say that the Upaid board approved this settlement after initial disagreement.
No comments have been received from Upaid so far.
The settlement of the fraud and forgery case with Upaid is a positive indicator of how well smartly Tech Mahindra is managing legal issues concerning Satyam Computer Services, the scam-hit company that it took over early this year. But it still has some way to go.
Mahindra Satyam needs to work out other legal issues, the largest perhaps being 12 US class action lawsuits. The company also has to fight three more cases arising from past acquisitions, concerning the Chicago-based Bridge Strategy Group, Belgium's S&V Management Consultant, and Venture Global.
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