Investors have approached a consumer court in New Delhi against fraud-hit Satyam Computer Services, seeking compensation for the lost value of the company’s shares, taking inspiration from about six similar suits filed against the company by investors in the US.
Midas Touch Investors’ Association (MTIA) has approached the National Consumer Redressal Commission seeking compensation of Rs 4,987.50 crore (about $1 billion) for three lakh Satyam shareholders, who lost their money when Satyam shares crashed to Rs 11.50 in January this year from Rs 544 last May. The scrip has now stabilised at about Rs 45.
Besides the company, the petition names Satyam’s former promoters, ex-independent directors and the ex-auditor, Price Waterhouse, as respondents liable to pay compensation. This is the first time shareholders have approached a consumer court in the country for compensation for the losses suffered due to fall in share price. The court will hear the petition on Monday.
The investor body approached the consumer court as only this platform can order compensation for all goods sold, including shares and debentures, if there is a deficiency on the part of the seller.
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