MUMBAI: Indian software exporter Satyam Computer Services said Thursday it has agreed to pay $125 million to settle a US class action suit after its former chairman admitted fraud.
The Hyderabad-based firm, hit by the massive fraud allegations two years ago, said in a statement to the Bombay Stock Exchange that the court in New York still needs to formally approve the deal.
But if given the go-ahead, it "would release, among other things, (the plaintiffs') claims against the company", the statement added.
At least two class action shareholder suits were launched in the United States after Satyam's former chairman B. Ramalinga Raju admitted he overstated company profits by more than $3 billion.
Satyam Computers announced in September 2010 that it was to delist from the New York Stock Exchange as it was not be able to meet the US deadline to file restated financial accounts.
Satyam was bought by the mid-sized outsourcer Tech Mahindra, a unit of the tractors-to-holidays conglomerate Mahindra and Mahindra, in April 2009 for $600 million.
Last week, the company -- now known as Mahindra Satyam -- reported an upturn in quarterly net profit, sending its shares soaring.
The company's shares were up 3.75 percent at 66.50 rupees on Thursday after the BSE announcement.
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