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Satyam’s U.S. Investors File Actions Alleging Fraud

Satyam Computer Services Ltd., whose shares in Mumbai plunged to record lows after its chairman said he falsified accounts, was sued by U.S. investors in at least two class actions in federal court in New York.

Hossein Momenzadeh, who bought 75 shares of the Indian software company’s American depositary receipts in July 2007 at $26.50 each, sued yesterday on behalf of all purchasers of the ADRs from January 2004 to January 2009. Aekta Ben Patel, who bought 100 shares in July 2007 at $27 each, sued Jan. 7, the day Satyam Chairman Ramalinga Raju revealed the fraud.

“When the truth was revealed,” the ADRs “lost nearly their entire value,” Momenzadeh’s lawyers wrote in his complaint.